- Arizona Family Law
- Attorney Trust Accounting
- Divorce Settlement
- Family Law Software
- Legal Billing
- Legal Software
- Legal Technologies
- New Jersey Family Law
- New York Family Law
- Password Management Software
- Pennsylvania Family Law
- Post Closing Service
- Real Estate Closing
- Release Tracking Services
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- November 2009
- October 2009
Tag Archives: hud settlement statement
Assuming the first two parts in these series haven’t put you to sleep, today we are going to look at page 2 of the HUD settlement statement. Page 2 is also known as Section L, Settlement Charges.
Section 700 covers the real estate broker fees. Here the total commission is calculated based on the selling price of the house. The commission can be split between the multiple agents or brokers. These funds usually come from the seller and this amount is often the single largest seller cost listed on the HUD settlement statement form.
Section 800 details the loan fees. These fees include origination charges, points, as well as fees for associated services like the home appraisal and the cost of pulling the borrower’s credit report. Note that brokers can enter negative numbers in line 802, the adjustment for the interest rate chosen, if the adjustment is a credit.
Section 900 lists advance payments required by the lender. Common entries in this part of the HUD 1 statement are the prorated interest that must be paid during a refinance and premiums for mortgage insurance required when borrowers don’t make sufficiently large down payments.
Section 1000 contains the reserves deposited with the lender to be held in escrow and cover costs such as homeowner’s insurance or the first few months of property taxes. The final line is the adjustment between the single-line amounts and the amount due according to aggregate accounting rules laid in RESPA rules.
Section 1100 is the part of the HUD-1 form where you’ll find charges incurred by the title company and any professionals such as notaries or attorneys. If one entity provides several listed services for a single charge then the aggregate fee can be entered on line 1107 or 1108. Include the line items of the other fees included and the amount won’t have to be broken down onto individual lines.
Section 1200 lists city, county and state recording and transfer charges. Agents who work in multiple jurisdictions must be careful to use the correct tax tables for the sale. Tables can vary by county, city, type of sale or other factors. Most agents use HUD settlement statement software to ensure they enter the figures correctly.
Section 1300 is where you find miscellaneous settlement charges that don’t fit under other categories and finally Section 1400 sums up all these values to show the total charges attributed to the borrower and the seller.
That concludes our trip through the HUD settlement form. It’s a complicated and meticulous document and there is no reason to complete it by hand with inexpensive software readily available. Contact Easy Soft to find out more about Easy HUD and our other legal practice management software.
When you first open Easy HUD you might be struck by the red, white and blue boxes. No, this color scheme isn’t there out of patriotism. Each color represents a particular type of field on the HUD settlement statement form and it’s important to understand how each box works in the grand scheme of things.
White boxes on the HUD settlement statement are standard fields. Most of them start out blank, although when you open a new case a few boxes in Section H will be filled out with the agent information you provided. Information in white fields will come only from you, the user. If you enter new information into the Section H fields that are automatically completed when opening a new file, your changes won’t later be overwritten by the software even if they differ from the agent information in default settings.
The red boxes on the HUD form are automatically calculated by the software. If you click on them nothing will happen. You can’t change the values here because that would undermine the accuracy of the form. If a calculated value is incorrect, then it’s because of information entered somewhere else on the form so you will need to change to source data rather than changing the calculated values.
The HUD statement blue boxes are the fields that probably confuse users the most. These are both automatically completed and user modifiable. As values are entered into certain fields, some of the blue boxes will be updated. If you make changes to these blue boxes then you need to realize that those changes can be overwritten if you modify the source values.
For example, you enter the buyer’s contract sales price of the home in field 101, a white box. That is copied over into field 401, the seller’s contract sales price, which is a red box and can’t be changed. Buyer and seller price need to agree. It is also copied into field 700 where it is used to calculate broker fees, but this is a blue box so you can change it. Maybe the house sold for $250k but the commission is being figured on only $200k, so you change field 700 to $200k and the commission calculation automatically updates.
However if you go back and change the sales price in field 101, it will be copied into field 700 and overwrite your modified commission baseline. You will have to change field 700 back to $200k again. Always verify any manual changes you make before printing the final form.
The red, white and blue boxes are typical of the flexible features you find in all of our HUD settlement statement software. Download a demo or try the full product risk-free for 30 days to see how much easier real estate paperwork can be.
Busy, busy, busy. It’s spring and real estate attorneys are busy.
The question for any real estate attorney is how much time to spend with pieces of paper and how much time to spend with the client. When the matter is fixed fee, like a house closing, having time to both prepare real estate forms and prepare your client can feel like a losing battle against the clock.
You need Easy Soft’s real estate document software. Our real estate closing software includes every form you need for closing, including deeds, affidavits of title, and even real estate document management checklists.
Our real estate document software is designed for you to enter the essential information only once, while the program automatically populates all corresponding fields of the pre-loaded real estate forms. Instead of having to fill in each form manually, typing names, addresses, and other buyer and seller information, just type that data once into a central screen and let Easy Soft do the rest.
Another way our real estate document software saves you document preparation time is the automated calculations for all of the taxes associated with the purchase or sale, along with other closing costs. And, if you reschedule the closing, Easy Soft’s real estate document software will automatically make all necessary adjustments to the figures.
If you’re interested in saving even more time with computer interface so that you can spend more time in client face-to-face, why not pair our real estate document software with our Easy HUD software? Adding our HUD software to your computer means that you can produce RESPA-compliant HUD settlement statements with an ease that will put a spring in your step.
The one additional suggestion for automation efficiency is to add a third product, our attorney trust accounting software? Easy Soft’s trust accounting software allows you to quickly and correctly manage all client funds related to real estate closings, including balancing funds in escrow, writing checks to realtors through water authorities, and offers reports ready to share with your client at the click of a mouse. We even offer software-compatible checks on our website as part of our product offerings.
These three products together at less than a total of $750 will make handling real estate closings so easy that you’ll have time to drink a cup of coffee with your clients.
Spring is in the air and real estate agents and buyers are out in droves.
Are you ready for this season’s up-tick in real estate business?
Every real estate attorney we know tells us that the way to be profitable is efficiency and volume. There’s no better way to accomplish these benchmarks than through Easy Soft’s real estate document software. When you combine our Real Estate Documents software with our Easy HUD software, you’ll have more than 200 closing forms at your disposal, from a Mortgage Note to a Warranty Deed to the HUD-1 closing forms.
Using our legal software, you enter the essential client information only once and on one screen. Our real estate document software automatically populates this essential transaction information into all of the corresponding fields on every form that you select. You can use the real estate document software and the HUD software to prepare every document, including the HUD settlement statement and associated closing documents.
All of the real estate documents you generate can be saved in Microsoft Word or Adobe .pdf format. You can e-mail documents from within the program. These features of our real estate document software and our HUD software allow you to stay on track to the task checklists that are also built into the products.
With our Easy Soft attorney trust accounting software, you can also manage your real estate escrow accounts, order checks, and print checks. Our legal escrow accounting software allows you to establish an account for each client, separately track all deposits and payments, and document your ethics compliance.
You may be thinking that to put together a software suite to enhance your busy real estate practice you will have to break the bank. Not true. At Easy Soft, we’re dedicated to delivering easy-to-use software to help attorneys deliver quality professional services at an affordable price. Licenses for our real estate document software start at $199. Our HUD software at $179.50. And our attorney trust accounting software at $249. All products include one year of free technical support and an unconditional 30-day money back guarantee.
Sometimes, seasoned real estate professionals don’t see the point of having specialized HUD-1 software. Take the HUD settlement statement form. If it’s your practice to complete it on paper, making manual calculations and adjustments as you go, then the point of using a HUD-1 program is surely lost on you.
To us, that’s like claiming a tricycle can fly you to Cambodia. You’d need a lot of ingenuity – and a fair bit of magic – to make that happen.
Say the seller paid for sewage for the entire year. It’s only July, and he’s selling. Clearly, the seller needs to be credited for his sewage payments. You’d simply punch in your sewage proration per diem, and out spits the right number: almost to the hour.
Has the closing been pushed back by a week? 10 days? Okay. Rather than fill out a new form and put your hard-driving calculator back to work, you simply punch in your new closing date, and let each number automatically adjust. There’s no need to:
- Perform the calculations all over again
- Double-check to see if anything fell through the cracks
- Worry that some of your calculations are flat-out wrong, and that your client will suffer later from your mistake(s)
Nope. Put in your number, enter your closing date, and let the result grind out like an automatic sausage machine. The same goes for all utility charges, payoffs of mortgages and other liens…even city and county transfer taxes. (Our HUD-1 software provides transfer tax rates for over 40 jurisdictions in the country.)
The advantages to you? You won’t make a mistake that costs you money that can never be recovered – no matter how little or great. Additionally, since you’re likely charging a fixed-fee for your services, you do the same work in less time.
For more information about our HUD-1 software, call Easy Soft at 800.905.7638.
If you’re a real estate closing professional or settlement agent, then you know. From the buyer, seller, and lender, to the realtor, title insurance agent, and governmental entities: there are easily about a dozen parties involved in any given HUD-1 closing.
That’s a dozen extra opportunities to receive inaccurate, outdated information-from each of these parties. That’s what makes Easy Soft’s data entry philosophy far more than a time saver. It makes it a “closing” saver. It’ll clarify your closing, streamline your communications with parties and clients alike, sift out time-consuming errors, and help bring you into compliance with your HUD-1 regulatory obligations.
Here at Easy Soft, we specialize in legal software that helps professionals like you to become more efficient. After all, technology ought to help you in your mission to streamline your work effort, reduce your overall energy expenditure, and leave you with the time to turn your attention to the finer, more discretionary tasks inherent in your job.
So we introduced the theme of “enter it once” to all of our legal software. What this means: once you enter your client’s information, you’re done. That information populates all of the data fields that require it. It fills in raw numbers for automated calculations (say, on your HUD settlement statement), provides name and address details for correspondence, forms, and other filings and documentation, and lets you prepare all of the myriad things you need to: without duplication of effort. This is true of divorce data, billing data, and trust data. And it’s certainly true of HUD-1 closings.
Outside of your closings, you can also use the data in more creative ways. You can use it for streamlining your records-and making them paperless. You can use it for your Rolodex-or Outlook Contacts files. It’s already organized-in a fashion that you are familiar with, and can navigate around.
The data is there for when you need to correct a number or a spelling error (you only need to correct it in one place, at one time). It’s there if this client and/or lender retains you again-or you have any other dealings with the same party (ies). It won’t be misplaced, and (if you’re backing up properly), it won’t go away.
Practicing law and handling real estate closing becomes much easier when you can enter it once: and enter it forever.
To learn more about any of our legal software, call us at 800 905 7638.