Filling out the forms for purchase or refinance of a home is a lot simpler than it used to be before there was a computer on every desk. Nowadays real estate professionals use HUD software to automate the process and ensure accurate completion of all needed paperwork. However not all solutions are created equal and you need to be sure you get an application that meets your needs.
The HUD-1 form is laid out in a fairly rigid manner. There is a specific space for every financial transaction, from title insurance premiums to county taxes to home inspector fees. This makes the process fairly straightforward, although still awfully tedious if done by hand. But what is a real estate agent supposed to do if a particular sale doesn’t fit in the predefined blocks of the form?
Forms can be amended with additional information. Multiple borrowers and sellers can be listed on the form in sections D and E respectively. As detailed below, several sections can be amended with as many line items as necessary to document all associated transactions.
On page 1 of the form, sections 200 (Amounts Paid By Or In Behalf Of Borrowers) and 500 (Reductions In Amount Due To Seller) list standard amounts such as deposits or payoffs of previous mortgage loans, as well as providing blank lines where agents can list other fees and charges. Agents can add pages with as many entries as necessary to list all amounts.
Nearly all sections on page 2 provide blank lines for agents to list miscellaneous charges associated with title charges, loan origination and more. Again, agents can attach to the form as many sheets as necessary to document transactions.
So the law allows agent to amend the form with necessary information, but not all HUD 1 software is capable of providing that flexibility. For example, a fillable PDF or Word form won’t have the capability to add more than a few charges to each section. Even some supposedly “fully-featured” real estate solutions won’t have the flexibility needed to handle all transactions.
It’s important to find legal solutions that offer the option to complete HUD closing statements completely and correctly. You don’t want a product that satisfies only 90% of the transactions you handle.
