Is A Settlement Agent Required To Produce A Final HUD-1 For The 2nd?
The 2nd is asking for a HUD-1 before I wire the funds to satisfy the negotiated loan. does this need to be produced by a escrow company or will one that I create suffice?
I will also need a zero balance statement for them to give to title. Is this ever in issue when the transaction is not done through an escrow, title, or other type of agent?
" will also need a zero balance statement for them to give to title"
I am unsure what that means. Any statements have to be the same, a copy of one is an exact copy. Having two different closing statements is out and out illegal. Hud1 for the second can be done by the lender. Lenders are required to do due diligence on all financial documents, whether they question one you create is something they will have to decide. All lenders are different but there are many rules they all have to follow, whether anybody believes it or not on this board.
Well the answer may appear weird but the " zero balance statement " was puzzling to me. I do real estate for a living and usually know phrases but that one got me unknowing. However if you wanted to know what the paper is called it is a satisfaction piece and I know what they are used for. The point I was trying to get at is that SOME SELLERS and BUYERS are trying to ZERO OUT balances to show to lender and they use TWO seperate statements and that is not legal. If you want to run me down because I read the question differently that is fine, I am a big boy I can take it.
Settlement agent is the person closing the loan and IRS holds it out to be different people in the transaction if a Broker does not do it or a settlement escrow company or attorney or title company does not do it. Again sorry I appear to be so unknowing.
Settlement practices vary from locality to locality, and even within the same county or city. Settlements may be conducted by lenders, title insurance companies, escrow companies, real estate brokers or attorneys for the buyer or seller.
http://www.hud.gov/offices/hsg/sfh/res/sc2secte.cfm
(Q) Who is required to report to the I.R.S.?
(A) Sellers of real property, under guidelines established by the I.R.S., are required to have their gross proceeds from the sale reported on a Form 1099S. When a settlement agent is used, the I.R.S. makes this agent responsible for the delivery of the information on the Form 1099S.
The settlement agent generally will be the escrow agent or title company; however, it may be an attorney, real estate broker or other person providing settlement services.
http://www.google.com/search?hl=en&lr=&q=IRS+settlement+agent&btnG=Search