How to Read and Understand a HUD Settlement Statement

Every real estate closing done at a law-abiding title company will include the settlement statement. This two page document is required by the Real Estate Settlement Procedures Act (RESPA), a program administered by the U.S. Department of Housing & Urban Development. It is a standard form that itemizes all charges for the parties involved.

hudI’ve had two closings in the past two business days, one as a seller and one as a buyer. As a seasoned investor, I am now quite familiar with the columns and numbers on the settlement statement, and it is easy for me to understand. But it hasn’t always been that way. I remember trying to follow along as the closing attorney would quickly flip between the two pages cross referencing different charges, pointing at real estate commissions, government recording fees, and the prorated county taxes. It is a lot of information to take in for the average buyer or seller. And when thousands of dollars are involved, it is important to know how to read and understand the settlement statement. (Warning: This is by far the nerdiest and potentially most boring thing I have ever written about. Proceed with caution.)

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How I Just Bought a House – Fast

I received a phone call yesterday from a wholesaler in Nashville, TN who said he had just gotten a house under contract and asked if I was interested in buying it. He told me the address, price, and a few facts about the property. The location in East Nashville is close to two other rentals that I own, so I was very familiar with the particular street and the surrounding area. It seemed like it could be a good deal, depending on the condition. I knew he had other investors that he was talking to, so I didn’t hesitate to check it out. Within fifteen minutes of the phone call, I was knocking on the front door.


The quick purchase, wholesale house

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