Facts for Assignment: You recently listed and sold a home. The closing is scheduled for May 15. You have just received the Settlement Statement (HUD-1) from Halloween P.A. the settlement agent. Using the listing agreement, the sales contract, and the good faith estimate of settlement costs given by the lender at the time of application, you begin the review. You intend to visit both the sellers and the buyers to deliver the closing package early. As you review the sales contract, you should trace all items to the HUD-1 and check off each as you do so.  The names of the buyers as listed on the contract are Barbara and Bob Buyers located at 1235 Way, Fort Lauderdale, FL 11115. The sellers’ legal names, taken from their deed when you first took the listing, are Mortisha and Gomez Sellars located at 6006 Scary Drive, Fort Lauderdale, FL 11110. The Buyer’s new loan they have taken has a principal balance of $125,000. Fill in the boxes in Section “B” with information if not provided.  Expenses Paid from Borrower’s Funds at Settlement (Page 2) Section 800: The lender charged 1% for discount points and 1% for the loan origination fee. The Buyers paid an appraisal fee of $400 at the time of loan application (POC). The good-faith estimate of settlement costs given by the lender at the time of application shows a $75 credit report fee, and $35 for an amortization schedule.  Section 900: The Buyers must prepay interest on the loan from May 15 through May 31 because the first payment on the new mortgage is not due until July 1. The Buyers will purchase a one-years hazard insurance policy from Trick or Treat Insurance for $840.  Section 1000: The lender requires that an escrow account be set up with two months’ advance hazard insurance deposit, two months’ advance mortgage insurance ($400 annual premium), and nine months’ advance property taxes based on an estimate of $2,200 annually. Section 1100: The buyers will pay $2,000 for title insurance. Section 1200: The estimate also shows recording fees of $15.00 for the deed and $50 for the mortgage, the documentary stamp tax on the note, and intangible tax on the mortgage. Release cost of $10.50. Section 1300: The Buyers will pay the survey fee of $300 to All Corners Surveyor.  There was a repair to fix the floor that the Seller’s will pay of $400. Expenses Paid from Seller’s Funds at Settlement (page 2) Section 700: The listing agreement shows that the seller will pay a commission of 7% to Realty Monsters. It will not be split with a cooperating brokerage firm. Check to see that the brokerage fee has been calculated correctly.  Section 1200: The Sellars have agreed to pay $10.50 for recording the satisfaction of the existing mortgage. Section 1300: The Sellars have agreed to pay Floor Repair $400 to fix the floor to the property.  The contract sales price is $120,000 (lines 101 and 401). Bring forward the total settlement charges to borrower from page 2, line 1400, to line 103. Bring forward the to.

1. Facts for Assignment:
You recently listed and sold a home. The closing is scheduled
for May 15. You have just received the Settlement Statement
(HUD-1) from Halloween P.A. the settlement agent. Using the
listing agreement, the sales contract, and the good faith estimate
of settlement costs given by the lender at the time of
application, you begin the review. You intend to visit both the
sellers and the buyers to deliver the closing package early. As
you review the sales contract, you should trace all items to the
HUD-1 and check off each as you do so.
The names of the buyers as listed on the contract are Barbara
and Bob Buyers located at 1235 Way, Fort Lauderdale, FL
11115. The sellers’ legal names, taken from their deed when
you first took the listing, are Mortisha and Gomez Sellars
located at 6006 Scary Drive, Fort Lauderdale, FL 11110. The
Buyer’s new loan they have taken has a principal balance of
$125,000. Fill in the boxes in Section “B” with information if
not provided.
Expenses Paid from Borrower’s Funds at Settlement (Page 2)
Section 800: The lender charged 1% for discount points and 1%
for the loan origination fee. The Buyers paid an appraisal fee of
$400 at the time of loan application (POC). The good-faith
estimate of settlement costs given by the lender at the time of
application shows a $75 credit report fee, and $35 for an
amortization schedule.
Section 900: The Buyers must prepay interest on the loan from
May 15 through May 31 because the first payment on the new
mortgage is not due until July 1. The Buyers will purchase a
one-years hazard insurance policy from Trick or Treat Insurance

2. for $840.
Section 1000: The lender requires that an escrow account be set
up with two months’ advance hazard insurance deposit, two
months’ advance mortgage insurance ($400 annual premium),
and nine months’ advance property taxes based on an estimate
of $2,200 annually.
Section 1100: The buyers will pay $2,000 for title insurance.
Section 1200: The estimate also shows recording fees of $15.00
for the deed and $50 for the mortgage, the documentary stamp
tax on the note, and intangible tax on the mortgage. Release
cost of $10.50.
Section 1300: The Buyers will pay the survey fee of $300 to All
Corners Surveyor. There was a repair to fix the floor that the
Seller’s will pay of $400.
Expenses Paid from Seller’s Funds at Settlement (page 2)
Section 700: The listing agreement shows that the seller will
pay a commission of 7% to Realty Monsters. It will not be split
with a cooperating brokerage firm. Check to see that the
brokerage fee has been calculated correctly.
Section 1200: The Sellars have agreed to pay $10.50 for
recording the satisfaction of the existing mortgage. Section
1300: The Sellars have agreed to pay Floor Repair $400 to fix
the floor to the property.
The contract sales price is $120,000 (lines 101 and 401). Bring
forward the total settlement charges to borrower from page 2,
line 1400, to line 103. Bring forward the total settlement
charges to seller from page 2, line 1400, to line 502. County
taxes are estimated to be $2,100 annually. The day of closing is
charged to the buyer. Please check the proration on lines 107

3. and 407. The Buyers gave a $10,000 earnest money deposit (line
201). The new mortgage is for $119277.96 at 7.5% interest (line
202). The payoff for the existing first mortgage is $50,000,
including interest (line 504). When all items are checked, enter
subtotals into lines 120, 220, 420, and 520. Carry subtotals from
those lines to lines 301, 302, 601, and 602. Enter totals on lines
303 and 603.
On page 3, fill in the Good Faith Estimate section with any
number. However, carryover the numbers in the HUD-1 section
as directed.
Make sure the items in the “Loan Terms” section is filled in.
Fill in the initial monthly amount owed (does not include
mortgage insurance or taxes).
Locate a mortgage calculator online and input the information
needed to determine the principal amount
.
Mark “No” for the boxes in the Loan Term section and there are
no monthly escrow payments.
Review your HUD-1 Settlement Statement for errors.
Attached is a Fact Sheet for your HUD-1 Settlement Statement
project. Please read the facts carefully and fill in the
information on the HUD-1 Settlement Statement. Please use the
HUD website located at
http://www.hud.gov (Links to an external site.)
and follow the directions in Chapter 13 of your textbook, page
419, to locate and access a fillable HUD-1 Settlement
Statement.

4. You will also need to use a mortgage calculator for this
assignment. Please research and locate one online.