Tag Archives: hud settlement statement software
Monitoring all the fees and payments in a real estate transaction doesn’t have to be complicated. When you use title closing software like Easy HUD, you can depend on the software to keep all your payments straight. This includes payments pre-disbursed by the lender, also known as net charges.
The Net Box
If you look at the HUD-1 settlement statement laid out in Easy HUD you’ll notice that many of the line items have checkboxes next to them. These are Net boxes and are used to indicate charges pre-disbursed by the lender. It’s important to track these because you don’t want to end up paying certain fees twice, or not at all.
There are only a few Net boxes on page 1 of the HUD, in section 200. Here you’ll find several blank lines that can be used to itemize various amounts that have been paid by the borrower or the borrower’s agent. There are four lines on the screen but if you click the More… button below these lines, you can add as many additional itemization lines as you need.
Page 2 is where Net boxes are used extensively. Several boxes are pre-checked because they are always or almost always paid by the lender. These include origination charges, mortgage insurance premium, homeowner’s insurance premium, and initial escrow deposit. These boxes can be unchecked if for some reason these are not paid by the lender.
Most of the other line items on page 2 have Net boxes so can be checked if pre-disbursed by the lender. Careful tracking of each fee ensures that the final HUD form will be accurate and the correct amount is requested from the buyer.
The Ledger Module
Items marked “Net” in the HUD settlement statement software are accounted for in the optional Ledger Module. The deposit from the lender is adjusted by all line items marked “Net” so that the deposit recorded in the ledger is the actual amount rather than the loan from line 202 on the HUD form. This is also true for refinance HUD forms, though the loan amount is from line 1600 on that form rather than line 202.
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Real estate transactions involve a lot of lot of paperwork and, not surprisingly, computers can help speed up that process. However rather than just giving you a faster way to produce a HUD-1 settlement statement, Easy HUD gives you a better, more intuitive way to enter the case data.
Filling Out The HUD Closing Statement Directly
Maybe you are used to completing HUD paperwork. Your brain works the same way the HUD-1 works. In that case, you have the option of filling in information on a screen designed to resemble the form itself. You start at the top with borrower, seller and lender names and continue down the page to fill in purchase cost, property taxes, and loan amounts. Along the way we even help you by doing the math, giving you access to all the tax tables you need, and making it easy to mark which amounts have been pre-disbursed by the lender.
However the HUD form is not logical, at least not to someone who hasn’t already completed a hundred or so of them. You end up jumping from subject to subject and it is easy to get confused about which figured goes where. Don’t you wish there was a more intuitive way?
Using The Case Data Page
Doesn’t it make more sense to enter all the information on the buyer in one place, all the information on the seller in another, and so on? We think so. That is why Easy Soft’s HUD settlement statement software includes a case data section for easy data entry. The software automatically transfers the information to the HUD form so you don’t have to wrestle with it. Enter the info, check the form before printing it out, and you are done. This method will probably take you less time than filling out the form directly.
You can even use a mixture of both. Enter some information on the case data tab, and then move to the form to fill in the spaces that are still empty. Each real estate professional will find a preferred method of doing it, and whatever works for you is the best way to do it.
This kind of flexibility is a hallmark of Easy Soft’s law practice management software. Our products are designed with real estate and legal professionals in mind, helping you succeed in your industry. Contact us for more information on any of our products.
Although it might feel like real estate is nothing more than filling out government forms, there are a few other tasks involved and Easy HUD can help with those. Of course we can help with completing the HUD 1 settlement statement, a big part of a real estate deal, but we can also help with tracking all of the financial transactions associated with the sale through the Ledger Module.
The Problem With Outside Ledgers
You have other options to track your ledger but none of them are going to be as easy to use as Easy HUD’s own ledger. You can note your transactions by hand, keeping your books in literal books. You can use a spreadsheet program to automate the calculations. Both of these require manual data entry and mistakes are common. Paper ledgers add the chance you will do the math wrong, possibly overdrawing an account without realizing it.
Many real estate professionals, even those who fill out the HUD 1 statement by hand rather than using an efficient tool like Easy HUD, use commercial financial software to keep their ledgers. While this is a step up from cobbling together a spreadsheet solution, it still runs into the problem of double entry. You have to enter transactions both in Easy HUD and the ledger program, and if the two ever get out of sync then you are going to have a problem.
Easy HUD’s Ledger Module
You haven’t got time to pore over paper books, confusing spreadsheets or complicated financial software. What you need is real estate title software that includes a built-in ledger option designed to work with the information you’ve already entered. The Easy HUD Ledger Module automatically imports information from the HUD-1 form you are preparing so you know your initial figures are accurate. If you ever change the HUD form, then a click of the button allows you to re-import the data to keep your ledger up to date.
The Ledger Module makes it easy to split or combine checks across multiple properties or multiple vendors. Print professional-looking checks so you don’t have to waste time filling them out by hand. Itemized ledger reports let you see the whole complicated financial picture and ensure that every check and deposit is accounted for.
Try a demo of Easy HUD real estate agent and attorney practice management software for yourself and see how you can cut closing time, simplify ledger accounting, and file 1099-S forms with a click.
You store sensitive information about your clients, ranging from Social Security numbers to credit information. You need that information to complete the HUD closing statement but you also need to protect it from unauthorized viewing. Here are a few tips on how to make Easy HUD even more secure against electronic intrusion.
Password Protect Your Computer – The computer running your title closing software should require a login and a password, and should automatically lock and require the password be re-entered if left unattended. This is important for desktops but even more so for laptops, which can be more easily stolen. It takes only a couple of seconds to enter a password and yet this goes a long way to stopping most attempts to get into your computer.
Use A Good Password – Computer security firm SplashData recently released their list of the most common passwords, which included such obvious choices as “123456″, “qwerty” and of course “password” and its clever brother “password1″. Using passwords like these is like leaving your front door unlocked with a sign saying, “Please don’t rob me. Thank you.” You don’t have to use passwords like “k1c#i/a4″ but use a little common sense when choosing one.
Update Your Security Software – You should have at the very least a firewall and an antivirus program. Your computer almost certainly came with both. However out-of-date security software rapidly becomes useless. Set all software for automatic updates, including not just your security software but also Windows, your browser, Java and any other potential security holes.
Don’t Forget Physical Security – True hacking is rarer than shown in the movies. Most data theft is burglary rather than digital crime. A thief can break into your office, take your computers and crack your HUD settlement statement software security at leisure. It’s not enough to lock the main door. Each office door should be locked as well. If you are in a high crime area you might want to invest in an alarm or security patrol. Remember a thief doesn’t just steal your equipment; he steals customer identities.
Some people feel that, since serious hackers can get past any security, there is no reason to implement these protections. Security isn’t so much about keeping people out as it is making you a more difficult target than someone else. Easy Soft legal practice management software implements the best security features around, but you still need to practice smart computing as well.
Technology allows us to do our jobs more quickly and easily but it’s also easy to end up buying software that ends up being a solution in search of a problem. You probably expect that we, as a software developer, are going say that you always need to use our products but in rare cases Easy HUD real estate title software isn’t the right answer for everyone.
Easy HUD puts a lot of tools at your fingertips. You can complete the HUD 1 statement much more quickly, and process closing on a fraction of the time of doing it by hand. Additional modules allow you to quickly file 1099-S forms electronically, prepare real estate ledgers or produce hundreds of real estate forms. Why would you not want to use such an effective tool?
Well, there is the cost. Easy HUD is a very affordable piece of software, but for small solo practices that still might be a lot of money. We offer a variety of license options, including a monthly fee rather than a single license purchase if you use the cloud version, but you still need to balance the money spent vs. your time saved.
You probably already have a system that you are used to. Easy HUD has an intuitive interface and is designed to be easy to use, but any HUD settlement statement software is going to have a bit of a learning curve. Filling out forms by hand is slower than doing it on the computer and more prone to errors, but sometimes a familiar method is faster than a “better” technology solution.
Or maybe rather than doing it by hand, you already use the computer. You fill out a PDF version of the HUD 1 and use spreadsheets or generic accounting software to handle the transactions. You have the benefit of using the computer to ensure calculations are correct without having to learn a new system.
In summary, there is a cost to using Easy HUD but it pays for itself in faster closings and more business. It may take you a little while to learn the software but in the long run you will save time by doing things more efficiently. At best a solo, part-time practice might not have enough sales to make it worth using Easy HUD but those practices are rare.
The vast majority of real estate firms will be better off with Easy HUD, but if you are in doubt contact us and let us help you decide if our real estate and legal practice management software is right for your business.
We all face the inevitability of death and taxes. While a real estate career won’t expose you to the former, tax calculation is a necessary evil of property sales. The part of the HUD 1 settlement sheet that trips up many professionals is the section on property transfer taxes, lines 1203-1205.
Even in the easiest of cases, property transfer taxes can be daunting. A dizzying array of tiers and rates and caps and percentages often end up confusing even experienced real estate agents. To make matters worse you have both state taxes and city/county taxes. Trying to find the right numbers on the HUD-1 settlement statement and do the calculations by hand is a nightmare.
It gets even worse if you practice in certain geographical areas. Some states have as many as six different tax tables depending on factors such as the type of property, the local tax rate and the length of the mortgage. Get it wrong and you will have city, county and state tax agencies knocking at your door taking a very close look at all of your financial records.
There is good news, though. Computers are quite good with numbers. Tax calculations that would cause an experienced accountant to need to go lie down won’t phase real estate software. Easy Soft’s Easy HUD program contains over 40 built-in tax tables. Simply plug in the jurisdiction and the software calculates the taxes automatically. No headaches, no errors, and no angry tax agencies.
If you live in one of the few jurisdictions not covered by the Easy HUD tax tables then you have two choices. One is to use the manual setting and enter your city/county and state tax rates yourself. The software handles the calculations for you. However a better option is to contact us and we will add your jurisdiction to Easy HUD. That way you never have to worry about entering the information again, and other professionals in your area will appreciate the update.
Stop wrestling with confusing tax codes and complicated calculations. Simply enter the numbers and let Easy HUD do the work for you. Download a demo of Easy HUD or any of our law practice management software to discover all the tools Easy Soft places at your disposal.