Posted by pat/WA on 8/25/10 11:54am
Msg #350379

Dumb question

This is probably a dumb question but I have been doing notary signing a long time and I have never been able to figure out why there are more than one HUD1 in the documents and the dollar amonts on them are different. Sorry, but how do I know which is the final one?

Reply by Cari on 8/25/10 12:13pm
Msg #350380

it will say FINAL on the top of the first page....

sometimes...

Reply by pat/WA on 8/25/10 12:21pm
Msg #350381

Re: it will say FINAL on the top of the first page....

They don't have FINAL on the top of the first page....I wish they did.

Reply by PAW on 8/25/10 12:26pm
Msg #350382

Re: it will say FINAL on the top of the first page....

Even if it says FINAL, it may not be the actual, real FINAL settlement statement. Only after distribution of funds, can the actual settlement costs be derived. However, in table closing states, the HUD that is presented to the borrower/buyer at the table, is supposed to be the FINAL.

Why are there others? During the loan development process, many different figures will change. This will cause different variants of the settlement statement to be generated. The borrower/buyer needs to acknowledge each iteration of the loan/sale, until the final one is prepared and agreed upon by all parties. (Not just the borrower/buyer, but the seller, if there is one, the lender, if there is one, and the title company. For purchases, a signed and fully executed HUD needs typically to be provided to the RE agent too.)

Reply by pat/WA on 8/25/10 12:34pm
Msg #350383

Re: it will say FINAL on the top of the first page....

Yes, but how do we determine which is the final one? We need this to notify the borrower is cash is due and how much.

Reply by Linda_H/FL on 8/25/10 12:41pm
Msg #350384

Re: it will say FINAL on the top of the first page....

IME the final HUD is sent with the title docs - not in the lender package..and the cover e-mail usually states the attachment contains the final HUD.

When in doubt - check with hiring party.

Reply by MichiganAl on 8/25/10 2:42pm
Msg #350411

I agree

The HUD from the title company is the final HUD (well, finalish).

Reply by Tess on 8/25/10 12:52pm
Msg #350386

TC’s HUD trumps the lenders’s HUD. The tops are different, the TC’s will usually have more information on it

Reply by anotaryinva on 8/25/10 1:03pm
Msg #350388

"There are no dumb questions, but they are easier to answer"

The final one is the one you receive after you get home from the signing...

sorry I couldn't resist.

Reply by JanetK_CA on 8/25/10 1:10pm
Msg #350390

LOL!!!!

Good one!!

But I do wish they would at least put dates on them. The way packages are sent to us -- especially with multiple attachments, and last minute docs -- it is hard to tell sometimes.

Reply by Linda Juenger on 8/25/10 2:13pm
Msg #350402

Re: LOL!!!!

I can usually tell which is the prelim and final just in the way the amts are stated. Sometimes there is no payoff amt for the old loan, sometimes the bottom line whether funds are due from or to borrower are not there, it is just blank, sometimes it indicates a huge amt due to borrower which means no final payoff amt has been determined. Take the 2 and compare them, there is usually a clue to which one is the final. But, there are always exceptions to every rule.

Reply by JanetK_CA on 8/25/10 5:15pm
Msg #350447

Re: LOL!!!!

I agree that it's obvious most of the time. But every now and then I run across a pkg with several versions - with bottom line numbers that are relatively close. When the borrower doesn't know what the numbers are supposed to be and there's no date, it can take more time than it should flipping through a package to find the right one - especially, like I said, if there are multiple attachments that aren't clearly labeled and the order isn't clear. If there's only one with the escrow package that's a given. If it had a date (as I've seen on some), that's a big help!

I think the biggest difficulty comes about with a situation where the borrower is negotiating last minute with the lender. I've seen some where there were several HUDs created on the same day. (I do remember at least one case, where the HUD had not only a date, but a time created. That was a great help!!) And that kind of a situation can also lead to last minute docs.

Reply by meganPA on 8/25/10 2:16pm
Msg #350403

Pat, always go with the one from the title co. If there is another HUD or something that looks like a HUD provided with the lender docs, it's basically part of the lender's closing instructions and will show the lender fees. It will not be the HUD that is used for disbursement. And when in doubt, just ask. Hope this helps...

Reply by CopperheadVA on 8/25/10 2:18pm
Msg #350404

I have no idea why the lender HUD gets included in the docs (I suppose just to confuse us and the borrower) but I just tell the borrower that it's a preliminary HUD. If it has a signature line I will ask them to sign it, but I tell them that the one from the TC is the final one.

Reply by Claudine Osborne on 8/25/10 9:58pm
Msg #350479

Re:Not a Dumb question

This was not a dumb question at all..There have been a few times that I was left scratching my head too..Espicially when funds are to be collected..I like all the replies and its nice to know we have humor too! Good question!