where is assignment fee located on final HUD-1?

Question

hi,

so I've only done assignment fees outside of closing thus far - on what line is the assignment fee stated in going through escrow and thus getting reported on the final HUD?

thanks

Patrick Britton · Answer

If I said I appreciate the responses I would be a liar.

I'm not sure if my question was worded incorrectly or if there's a full moon or something but based on the responses I went ahead and did some work outside of this forum.

So, I asked a currently-producing wholesaler and two different title companies.

Here's what one of the title companies wrote:

"You are absolutely correct!  Any charge, credit, or funds passing through escrow must show on the HUD-1.  The charge would show in the 1300 section."

@Wayne Brooks      Thank you for your reply.

Next time a question is asked any respondent should have actual and current knowledge of the topic.  Perhaps, many years ago the assignment fee wasn't on the HUD when going through escrow.  But it most certainly is now - and that's very important.

It may also help to be an actual wholesaler who is active in the marketplace.

good luck to you all.

Curt Davis · Answer

@Patrick Britton

If you are assigning the contract then there is no assignment fee on any HUD.  If you are assigning a home you have under contract to your buyer then the actual transaction will be between your seller and your buyer.  You will collect your fee at closing but it will not be on any HUD.

Hope that clarifies

Good luck

Ben Leybovich · Answer

Hahaha - I needed a laugh tonight...

Oh my

Stephen Robertson · Answer

Where would this be recorded on the new form that replaced the HUD statement?

Chris Uhler · Answer

@Patrick Britton

Bill Gulley · Answer

Well, I'll say it, IRS Code requires a full accounting of all amounts exchanged in any real estate transaction, RESPA may or may not apply, the Code applies to any RE transaction.

Buyer must account for fees and expenses paid to establish the correct basis in compliance with the Code.......unless you like taking chances of tax evasion, I suggest you show and report costs.

A buyer can show an assignment fee on lines in the 200 section, summary of borrowers transactions, it can be shown "P.O.C." for paid out of closing. It could also be collected by the settlement agent and disbursed. If there us no loan, amounts can then be entered in Additional Settlement Charges on the buyer/borrower side, lines in the 1300 section, it balances as a disbursement to third party expenses due from the buyer, that too can show P.O.C.

You can use these lines as any preliminary HUD required, the settlement agent prepares the final HUD and they may move lines due to other charges that may become due, such may not be known at contract time.

Not disclosing true costs of settlement is fraud, can be mortgage fraud, real estate fraud and tax fraud, I suggest you inform the settlement agent!  Assignment fees should not be an issue. Good luck :)

Wayne Brooks · Answer

I believe @Curt Davis 's response wasn't a declaration it Couldn't be done, but that good business practice would be to collect your Entire assignment fee, at the time of assignment, so it Shouldn't need to be done.

Wayne Brooks · Answer

Any unpaid portion of your assignment fee could be on the HUD, likely in the 1300's section.

where is assignment fee located on final HUD-1?

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