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#395348 - 11/22/11 04:34 PM HUD Is Not Correct Bu In My Buyers Favor
pastmember Offline
Member

Registered: 01/22/06
Posts: 411
Loc: USA
Got the HUD yesterday and there is a credit to the buyer from the seller (bank foreclosure) for $615.00..we had to delay closing at the last minute 2 weeks ago due to seller and buyers asked seller to pay the $615.00 for loan extension and seller refused. The sellers Realtor evidentially hasn't looked at the HUD very close because we are closing tomorrow and nothing has been said.
I am a buyers agent so do I inform the title/closing company about the mistake? Feel like I should but I will be taking $615.00 out of my clients pocket.

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#395400 - 11/23/11 10:45 AM Re: HUD Is Not Correct Bu In My Buyers Favor [Re: pastmember]
pastmember Offline
Member

Registered: 01/22/06
Posts: 411
Loc: USA
Update....I explained to my clients/buyers that if we don't say something there is a good chance that the seller/bank will catch it at the closing table and refuse to sign HUD...buyers agree that the right thing to do is to disclose HUD error and I did that.


Edited by SummersAtTheLake (11/23/11 01:57 PM)
Edit Reason: spelling

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#395401 - 11/23/11 11:13 AM Re: HUD Is Not Correct But In My Buyer's Favor [Re: pastmember]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7776
Loc: Vermont's North-East Kingdom
It's a good thing that you know how to read the HUD. Some Agents never learn to do anything more than to check for the amount of their Commission.

And your Buyers can feel confident that "IF" the error had been in the other direction, you would have caught that too, and done your best to protect their interests. That's how a Buyers' Agent earns his keep.

Can't say the same thing for the Listing Agent. Some people just assume that the HUD will always be correct and don't devote any time to reviewing it for these little problems; but that's why a draft is distributed in advance . . . . the preparers know there may be mistakes.

Buyers and Sellers cannot be expected to analyze the accuracy of these documents that they see so rarely . . . . they rely on us. Sometimes the credits and debits are switched and the swings at the bottom line can easily amount thousands of dollars, even though it had balanced.

Forewarned is forearmed.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

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#395405 - 11/23/11 02:05 PM Re: HUD Is Not Correct But In My Buyer's Favor [Re: Vermont]
pastmember Offline
Member

Registered: 01/22/06
Posts: 411
Loc: USA
Closing is today and it will be interesting to see if the listing agent does catch it. Instead of changing the HUD and screwing all documents up my clients are just going to write a check to the seller/bank for the amount.
We don't use attorneys for our closings so we need to understand the HUD...my client happens to be an attorney though and was very easy to work with.

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#395407 - 11/23/11 02:56 PM Re: HUD Is Not Correct But In My Buyer's Favor [Re: pastmember]
VABroker Offline
Veteran Member

Registered: 11/02/10
Posts: 1063
Loc: Virginia
I, too, always look the HUD-1 over when they issue it before settlement. Always best to catch the error in advance because it always comes back to bite you in the end.

Good job!

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#395431 - 11/23/11 08:04 PM Re: HUD Is Not Correct But In My Buyer's Favor [Re: pastmember]
Pikes Peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2799
Loc: FL
Closings on my own last 2 homes had errors on the HUD-1, which I caught.
The last one was at closing when I had reduced the purchase price by my commission, but the builder was going to pay me anyhow. Darn, I'm just too honest and let them know, it would have been a nice payday.
Remember, buyers and sellers will sign a document at closing to return to the Title Co. and correct any errors that were made, including funds I presume.

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#395439 - 11/23/11 09:51 PM Re: HUD Is Not Correct But In My Buyer's Favor [Re: Pikes Peak]
VABroker Offline
Veteran Member

Registered: 11/02/10
Posts: 1063
Loc: Virginia
Oh, you know the closing agent will eventually see that error. Had one as the listing agent and TOLD the closing agent they had the wrong commission on the HUD-1 (the seller was grateful I was honest); yet, they STILL put the higher commission amount on the HUD-1 and it went through closing. Of course, the next day, I get an email saying, "Oops! We made a mistake and sent the check out. Would you please reimburse us?" As if I have the 'power' to keep the extra dough.

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#395483 - 11/24/11 02:34 PM Re: HUD Is Not Correct But In My Buyer's Favor [Re: VABroker]
pastmember Offline
Member

Registered: 01/22/06
Posts: 411
Loc: USA
The other thing that I probably should have added is that the property I brought the buyer on is a local bank foreclosure and it is not my listing but I currently have several of the banks properties listed and speak to the bank rep handling the foreclosures very often and he is a friend of mine.

We got it closed yesterday and my clients gave the bank a personal check for $615.00 at closing..banks Realtor never did catch the error. My clients are happy 'cause they go a heck of a deal on a new construction lake home...appraisal came in 55k over sale price and that is really good in this market.

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#395488 - 11/24/11 03:46 PM Re: HUD Is Not Correct But In My Buyer's Favor [Re: pastmember]
VABroker Offline
Veteran Member

Registered: 11/02/10
Posts: 1063
Loc: Virginia
I think when an REO listing agent has alot of listings that they don't look at anything that comes through - they seem to just list and forget.

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#419101 - 01/26/13 05:23 AM Re: HUD Is Not Correct But In My Buyer's Favor [Re: pastmember]
LizL Offline
Major Contributor

Registered: 08/27/05
Posts: 1793
Loc: Missouri
I know that this is an old thread, but one GLARING problem caught my eye. Buyers should NEVER write a check at closing to give to the seller. All money transfers should show on the HUD1 to avoid possible RESPA violations. Agents, lenders, buyers, sellers--all money transfers to or from must be on the HUD1.

In regard to the HUD1, all parties are held responsible for correct financial reporting. It does not matter if it is on "your" side or the other side of the HUD1. If you find an error, report it. You are a licensee and are bound by law and by ethics (especially NAR members) to insure an accurate transaction and accurate reporting of money transferred.
_________________________
Broker/Owner, REALTORŪ,GRI, ABR
REO listing/selling since 2004; BPOs only for current clients

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#419141 - 01/27/13 01:51 AM Re: HUD Is Not Correct But In My Buyer's Favor [Re: LizL]
VABroker Offline
Veteran Member

Registered: 11/02/10
Posts: 1063
Loc: Virginia
So, HUD sales contracts always state what each agent's commission is. I get the draft HUD-1 AFTER closing and they had the buyer's agent and the listing agent's commission switched around. Now, how can THAT happen if closing agents are supposed to be going by what the contract says? Nobody's looking out anybody so you've got to look out for yourself and your client - at ALL times.

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