Posted by Mike/NJ on 4/19/05 2:27pm
Msg #32693

Forecloseure question

Do you need a HUD settlement statement on a Foreclosure purchase? I have a signing tonight and all the docs look fishy, no settlement statement and no copy for the couple.

Reply by Mike/NJ on 4/19/05 3:33pm
Msg #32702

Consulted a few title company lawyers and all real estate transaction need a HUD. When I canceled the appointment they did not even care.

Reply by Ted_MI on 4/19/05 8:37pm
Msg #32741

Re: Don't think so........

Mike,

I have done over fifty HELOC's for a certain company and never once have I ever seen a HUD, a Truth in Lending Disclosure statement indeed but not a HUD. And I do believe these are viewed as real estate transactions.

Reply by MIke/NJ on 4/19/05 9:11pm
Msg #32751

Re: Don't think so........

Must be a NJ thing then. All HELOC have a HUD showing the credit line and cost breakdown of the loan.

Even my small HELOC packages have HUD's.

Reply by Mike/NJ on 4/19/05 9:32pm
Msg #32758

Re: Don't think so........

Reply by Mike/NJ on 4/19/05 9:34pm
Msg #32760

For Ted/MI

http://homebuying.about.com/cs/titleescrow/a/hud1_settlement.htm

The statutes of the Real Estate Settlement Procedures Act (RESPA) require the form be used as the standard real estate settlement form in all transactions in the United States which involve federally related mortgage loans

Reply by PAW_Fl on 4/20/05 7:44am
Msg #32805

Re: For Ted/MI

Mike,

You need to read the Act itself (http://www.access.gpo.gov/nara/cfr/waisidx_99/24cfr3500_99.html). It specifically states, "The use of the HUD-1 or HUD-1A is exempted for open-end lines of credit (home-equity plans) covered by the Truth in Lending Act and Regulation Z." [CITE: 24CFR3500.8]

I have done many, many HELOCs without a HUD as they are exempted (as noted above). However, all closing costs associated with the HELOC must be and are disclosed within the documents, usually within the product disclosure and agreement.

Reply by Joan-OH on 4/19/05 9:35pm
Msg #32762

I did 2 REO purchases today and 3 yesterday. I have never done one without a HUD. Now that is in Ohio. NJ may be completely different.

If it is a cash purchase (many are) you should, at a minimum, have a HUD, copy of the Deed or form that they buyer signs to order a deed, and a title committment. Then there are usually a couple of title junk docs.

Again, this is my experience for Ohio.

Joan

Reply by BrendaTX on 4/19/05 9:43pm
Msg #32765

HUD 1 -

Was talking to another NSA the other night...she and I discussed that some states don't seem to require the HUD 1. Case in point...CA Rev Mort that I did here. No HUD 1.

Reply by BrendaTX on 4/19/05 9:45pm
Msg #32766

Re: HUD 1 -

Should have mentioned the other NSA was from another state. Also, I am not saying that I know this for certain, but like Ted, I have seen packages where they did not come.

Reply by REOAGENT on 4/19/05 11:35pm
Msg #32776

Re: HUD 1 -

Hi Mike I am a NJ licensed Broker-Salesperson who is a specialist in REO/foreclosures. In the state of NJ a completed HUD1 must be present. In the state of NJ only an attorney or a NJ Licensed Title Producer can sign the HUD1 which they in so many words "close escrow". Helocs in the state of NJ must have a HUD1. There is often a third page of the HUD1 on Helocs also known as a HUD1 supplement page. It often covers more itemized costs that are commonly found in Section L of the HUD1. Common things found here are POCs for Recording of the Deed of Trust, etc.. This information in NO way is to be considered legal advice. U can get information about all these matters like u have from local title company attorneys, nj dobi, dept. of hud, etc. This is just my experience that I have found. Hope this helps!