estimated Hud and Final Hud

Hi Cynosure,

Welcome to Mortgagefit forum.

HUD-1 Settlement Statement is used by the closing agent to itemize all charges involved in the transaction. It lists a complete accounting of the purchase transaction.

An estimated HUD-1 settlement statement is just an estimate of what the charges would be & is provided by the escrow company. This can be used to check if the fees and charges are in line with what the estimate showed at the time borrower signs loan documents. Estimated HUD is useful in comparing the charges that are mentioned on the good faith estimate to know if any differences exist.

Colin

You are entitled to get a copy of estimated HUD settlement statement twenty four hours before the closing, if you are making your request for the same in writing before this time period begins.

This statement is important for borrowers who want to have some time to review all the fees and charges they will have to pay and if necessary initiate any changes that they think are necessary to be made prior to loan closing.

Miller

Hi Cynosure,

You may have look to HUD1 Settlement statement too. www.fdic.gov/regulations/laws/rules/7034.pdf

Thanks

The estimated hud and the final hud should only be a couple of hundred dollars difference correct. If there is a $4400 dosen't somebody got to notify somebody like the borrower of the difference between the 2? regardless of a credit or not?

Hi Allarry,

I think a day before the closing the lender allows the borrower to check through the final HUD statement so that he can arrange for the funds in advance. So, that is how the borrower comes to know of the difference between the estimated costs and the final HUD statement.

Thanks.

Is there typically a cost associated with obtaining an estimated HUD? Can it be obtained before escrow is opened? We are currently working to close a short sale and the bank is requesting an estimated HUD to proceed in determining if they can approve an offer we've received... however, the title company is insisting that we have to pay to open escrow in order to receive an estimated HUD??? Any help would be appreciated.

Hi Guest,

You will have to pay certain fees to obtain an estimated HUD. It cannot be obtained unless an escrow is opened. However, an estimated HUD is required after the mortgage has been originated. But in your case, I'm not sure why the lender needs it to approve the short sale offer.