Reply by PAW on 3/7/09 2:15pm
Msg #279982
Florida is a table funding state and as such the borrowers should receive a FINAL HUD or Settlement Statement at the closing table. This is true even with most CA lenders. However, CA being an escrow funding state, the final HUD (which is prepared by title) isn't prepared until after all disbursements have been made, especially if the title company is also a CA company. So they include an ESTIMATED Settlement Statement with their packages. It's not a big deal with refinancing because of the 3-day rescission period. And even then the "Final" HUD can still be changed to reflect the actual costs.
In the past 10 years, I have had only one borrower (a real estate attorney) who refused to continue the signing without a "Final" HUD from the title company.
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Reply by Glenn Strickler on 3/8/09 2:30pm
Msg #280027
What's in a name?
At the point in time where we are involved in a loan in CA, we use an "Estimated Closing Statement", because, unlike table funding states, at this point in time, these numbers are still estimated. We call it a HUD, but that is probably incorrect even though it serves the same purpose except the numbers are estimated. When all the figures settle out after the signing, then the borrower receives the final closing statement with the reconciled numbers. Lenders, escrow and title companies, in my experience, tend to overestimate the costs and when the numbers settle out, the borrower always seems to pay fewer costs. The lenders hate to go back to the BO and say it's more expensive than on the estimated statement.
Your experience sounds normal to a person living here in an abnormal state .....
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Reply by sue_pa on 3/9/09 7:53am
Msg #280056
my favorite part is the "escrow pad" - try explaining that to someone who wants a real settlement sheet. That said, if I ever were to have my own closing done by a CA company , which by the way would never happen - I'm in PA and would never allow anyone except a local company to do my work - I certainly would not close without a final settlement sheet. I've got no idea why they don't adapt to the states where they work rather than impose their 'way' on others. Don't get me started on that ridiculous Statement of Info that pertains to NOTHING in PA - I still will never understand how wanting to know someone's children's names and ages and where the borrower worked a decade ago will clear a judgment.
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