A tax amount was calculated incorrectly on my hud-1 statement in my favor. The settlement lawyer called me and requested that I pay the money back; which I believe I should. However, there is no correction being made on my statement. My question is: Shouldn’t I get a corrected Hud-1 statement to show my true settlement cost. Also is this even legal without a correction?
I would really appreciate an answer as I researched this and can’t find anything that covers this situation, I am being harassed at my job and receiving phone calls on my cell asking for the money.
I not really sure what’s the right thing to do.
Hi, L. If the taxes that were incorrect impact the prorations on HUD-1 keep an eye on the 1099 if one is being issued to the IRS. You want to be certain correct figures are given to the IRS. Otherwise, I think you should expect a letter from the attorney explaining what happened and evidence to support the tax figures. You are honorably correct that you need to make right an error but I wouldn't give money unless I had documentation for my records. You can use the letter and evidence in addition to your HUD-1 statement as a formal record for your tax preparer. These things are often resolved without redoing the HUD-1 statement.
Thanks for reading and sharing. Hope this helps. ;)
PS Hmmm..not to confuse - when I mentioned the IRS 1099 I was presuming you were the seller. If you were the buyer and you had a mortgage lender, then your mortgage lender needs to be part of the decision whether or not to create a corrected HUD-1. If they don't care, get that in writing - email is fine. ;)