Posted by upnorth/AK on 1/15/13 11:26am
Msg #450496

HUD that isn't final

I know this has been addressed before but I can't locate it with search. When the package has a copy of the HUD that isn't final, do you print a copy and have the borrower sign it? I have had several borrower's say they aren't going to sign it if it isn't the final.

Reply by Pam/NM on 1/15/13 11:30am
Msg #450499

Yes n/m

Reply by CentralNY on 1/15/13 11:30am
Msg #450500

no you don't it is usually

a prelim hud that is part of the closing instructions for the tc but be sure you have a final.

Reply by CentralNY on 1/15/13 11:32am
Msg #450501

upnorth how's that for confusion

i have never had a prelim hud signed and have never had a problem. don't know what they do in nm.

Reply by jba/fl on 1/15/13 11:35am
Msg #450503

CA is almost always not final. n/m

Reply by Pam/NM on 1/15/13 11:35am
Msg #450504

Re: upnorth how's that for confusion

If it's in the package, it gets printed. Usually no signature line on prelims. I follow escrow instructions, but most want me to have them signed.

Reply by Linda_H/FL on 1/15/13 11:47am
Msg #450507

If AK is an escrow state you probably won't see a final HUD

until time of funding (usually). You'll see an Estimated Settlement Statement but the final HUD isn't available until all funding conditions are met and recording is complete.

If you're a "table funding" state, there must be a final HUD and TIL in the package you present to the borrowers.

I don't blame borrowers for not wanting to sign a HUD that's not final, but they may have no choice depending on your state. I'd suggest you call the hiring party and ask them how they want you to proceed. It's possible they may not have sent the final HUD yet.

JMHO

Reply by Pam/NM on 1/15/13 11:50am
Msg #450510

Re: If AK is an escrow state you probably won't see a final HUD

Thank you Linda--you always have the clearest explanations--it's like you take the legalese and translate it into something that makes sense without dumbing it down. I learn so much from your posts!

Reply by Linda_H/FL on 1/15/13 12:00pm
Msg #450512

Thank you - happy to try to help. n/m

Reply by HisHughness on 1/15/13 12:07pm
Msg #450514

Definitions, please, for those of us unfortunates ...

... who have never worked for title companies.

I gather that:

Escrow state = escrow officer at title company disburses funds.

Table funding state = funds are disbursed at closing.

Reply by Linda_H/FL on 1/15/13 12:15pm
Msg #450517

Also referred to as "wet funding" or "dry funding"

the differences based on when actual disbursement occurs. It happens that AK is a dry-funding state (escrow state) so no final HUD until after recording of the security instrument

http://www.bankerbroker.com/resources/questions-answers/dryfundingstatevswetfundingstate

Although I'm sure you knew this, Hugh.

Reply by HisHughness on 1/15/13 2:41pm
Msg #450548

Re: Also referred to as "wet funding" or "dry funding"

***Although I'm sure you knew this, Hugh.***

The depth of my ignorance is often exceeded only by the extent of Bob_Chicago's ugliness.

Do I have the proper understanding of "table funding"?

Reply by jba/fl on 1/15/13 2:45pm
Msg #450549

Bob's ugliness? Brad Pitt is ugly? n/m

Reply by Linda_H/FL on 1/15/13 3:00pm
Msg #450550

Re: Also referred to as "wet funding" or "dry funding"

Table-funded (or wet-funded) - funds are disbursed at the table or at end of rescission period - not held in escrow pending recording of the security instrument.

Reply by sueharke on 1/15/13 12:32pm
Msg #450523

Re: If AK is an escrow state you probably won't see a final HUD

If there is not "final hud" in the package, I tell the BO that it will probably be sent in the mail at a later date (and it usually is, as happened to me when I refinanced).

I also do not accept the estimated HUD or settlement statement to prepare and income tax return as I always ask the final statement.

Reply by MW/VA on 1/15/13 3:26pm
Msg #450559

Totally agree with Linda on this. CA & AZ are escrow

states, and they don't issue "final" HUD's like we're used to seeing. Nonetheless, the borrower needs to sign whatever is provided.