Reviewing the HUD
Let's take a look at the HUD 1 Settlement Statement that RESPA officially endorses for all transactions: new loans, assumptions, all-cash, owner finance, etc.
The HUD-1 is usually the first document discussed during a closing.
The first page summarizes the entire financial transaction. The left half of the page is devoted to the buyer. The top portion covers the charges the buyer is facing. The sales price of the subject property is the first, followed by closing costs and pro rata taxes (if closing takes place during the 4th quarter). The bottom portion looks at the buyer credits: earnest money, new loan amounts and any taxes.
The right side of the first page is devoted to the seller and is a reversal of the buyer's side. The top covers credits: closing costs, mortgage payoffs, pro rata taxes, repairs, etc.
Page two is simply a detailed breakdown of all buyer and seller closing costs, are summarized on page one. The buyer's information is in the left column; the seller's in the right.