What is HUD-1 or Settlement Statement?'
The HUD-1 is a form used by the escrow agent to itemize all charges the buyer and the seller must pay for the real estate transaction. It gives each of you a complete list of your incoming and outgoing funds.
The HUD-1 form:
■ Is a written accounting of the escrow transaction
■ Is prepared at the close of escrow
■ Includes all charges and credits to your escrow account
■ Reflects the:
◗ Purchase price◗ Funds deposited or credited to your account
◗ Payoffs on existing encumbrances or liens
◗ Charges for all services
◗ Net proceeds (a final determination of the amount you are entitled to receive at the close of the escrow) ◗ Required funds you must bring in to close the transaction
Be sure to review the closing or settlement statement carefully. It is the final statement of the finances of your transaction. If you do not understand something on it, be sure to ask the escrow agent to explain it.
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