Thursday, January 28, 2010

Signatures on the HUD-1 form? Keith raises a good point.

Hi Diane,

I came across your blog while doing some research.  I was thinking that a good topic for an upcoming entry would be regarding signature requirements for the HUD-1 settlement statement.  In my case, my copy of the HUD-1 has the signature of the Settlement Agent (I'm assuming that was someone at the title company I closed at), but not the signature of the sellers.  A call to someone at my title insurance company said that they don't require signatures on HUD-1s they process.

I mention this because the IRS is wanting signed copies of this form for filers claiming the homebuyers' tax credit.  There are comments on other blogs from people who say their tax credit request was delayed or rejected because the HUD-1 they submitted didn't have signatures on it.  I know you're not a tax expert, but I'd be interested to hear your take on the matter.  For instance, what other documents could be used basically as proof of purchase on a real estate transaction?


Keith:  Thanks for suggesting this timely topic.  The title agent is correct that signatures are not required on the HUD-1 Settlement Statement but most title agents do have the HUD-1 signed just because it creates a fully documented record for all parties and most mortgage lenders want a signed copy.

Moving forward I would suggest that homebuyers participating in the tax program make a call ahead of time and make certain the title agent will provide a fully executed HUD-1 so they don't find themselves in your position.

For your concerns, I would try to get a fully executed HUD-1.  From what I have heard that's what the government is looking for and I don't know that they will accept other forms of documentation.  I would contact the seller directly or your mortgage lender to see if they will provide a seller signed copy.

Good luck!




Jen - Saint Louis, MO said...

Finally some good information about a HUD-1 with no or partials signatures! The final HUD-1 I have only has mine and the title company signatures - no seller. Since the IRS is requiring the HUD-1 to have all signatures I am not taking a chance on submitting a partial doc. as I've read to many horror stories about the delay of the first time home owners tax credit due to incomplete backup.

I've already contacted the title company that helped close me to see if they can provide me a fully executed HUD-1. Hopefully, they can help me in obtaining this info. I'll post another comment when I hear back from them.

Diane Cipa said...

Excellent. Thanks, Jen.

Jen - Saint Louis, MO said...

Update, the title company was able to provide me with the 'seller's' signed HUD-1. I am going to send the IRS both copies as required first time home owners tax credit documentation.

Diane Cipa said...

That's great, Jen. this is a real reminder to readers that you must make the effort to obtain and keep a fully executed HUD-1.

Think about those records when divorcing, too. I get several inquiries every year from folks who lost their records in a divorce. Yesterday, I received an e-mail from a consumer who needed HUDs for three transactions. I could only find two in our records and she realized that the third was closed by a title agency that has since gone out of business. Unless she can find the seller and gain cooperation, she'll not find a copy of her HUD-1.

rivetchic said...

I've gone through all of my paperwork and did not receive a Hud1. I have a final statement of settlement, and ironically an "Adendum to Hud 1" but no actual Hud 1. I've called my real estate agent to see if she can obtain it from the Escrow company. If that doesn't work, I will suggest the title company. Thanks for putting this information out there. Being a first time home buyer, I assumed everyone gave me what I needed.

Diane Cipa said...

You're welcome. Sometimes the HUD-1 isn't clearly recognized and it may just say Settlement Statement at the top. You're real estate agent can help you identify the correct document as HUD-1 in your folder.

I often receive calls from our customers who can't find their HUD-1 but when I have them go through the folder while I am on the phone they always find it.

Everybody looks for a big obvious HUD-1 notation but it's usually pretty small. ;)

Perturbance said...

Thanks Diane for your advice.

In my case, I sent a copy of the HUD-1 to the sellers, along with a letter requesting that they sign it and return a copy to me. They did, allowing me to proceed with my tax filing. However, this approach could be more problematic in some situations, for instance if the sellers were unsatisfied with the conditions of the sale.

Diane Cipa said...

I agree. The best advice for buyers is to talk with the title agency ahead of time and request that they receive a seller signed HUD-1 at closing.