Real Estate News & Commentary

Breaking Down the HUD-1 Settlement Statement

Expertise:
22 Articles Written
The Settlement Statement, often referred to as the “HUD-1”, is a document that contains a detailed breakdown of the closing costs apportioned between the buyer and seller of property. Typically, the closing agent (often a representative from the title company), gathers the pertinent information, completes the Settlement Statement and disperses the required funds once the [...] View the full article: Breaking Down the HUD-1 Settlement Statement on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free
    nuShack
    Replied almost 12 years ago
    That’s easily the most detailed breakdown of that document I’ve ever seen. Your post should be required reading home buyers. Odds are, most people sign and have no idea what all the numbers mean.
    Joshua Dorkin
    Replied almost 12 years ago
    One of the best posts we’ve ever had, Josh! Nice work.
    Ilyce Glink
    Replied almost 12 years ago
    Great post. Many buyers and sellers never see the HUD-1 form until the day of the closing. You can ask your attorney to fax you a HUD-1 form a day before the closing, when typically all of the information is filled in. If you’re not using an attorney, the title company ought to be able to get it for you. This is your opportunity to check what’s on the HUD-1 and make sure it’s correct.
    Joe B
    Replied over 11 years ago
    This is the kind of information that future buyers and sellers really appreciate. I plan to add some related content to our site regarding this very soon.
    Ania Tates
    Replied over 10 years ago
    This is an excellent breakdown of the HUD1! Thanks for sharing, this was very informative!
    Homeowner M
    Replied over 9 years ago
    I recently went through the process of buying a new home and leading up to the closing day- requested a copy of the HUD-1 statement. Upon receiving it from my lawyer, I noticed a rather large ($6K+) discrepency from what I was estimating as needing to bring to the closing (in my favor). When I brought it to my lawyers attention, I was told that their numbers were accurate and that I was ‘over-analyzing’. I questioned again and sent an email stating that the numbers seemed off, but was told that their numbers were correct. Upon completing the closing- and receiving a check from my lawyer with the balance ($3K)- I went about settling into my new home. Two days after closing, I was told that the lawyer DID make a mistake and that their calculations on the HUD-1 statement were not correct, and that I my numbers were accurate. I do not believe we should be responsible for having to pay out the difference now that we have closed and signed off on the HUD. Any advice? Thank you.