Recently had a client close and the title company (at first, they later provided a HUD-1 statement also) was using a "master settlement statement". They stated that in a cash sale it was not necessary to use a HUD-1. Neither myself (5 years as a REALTOR) nor the listing agent (14 years as a REALTOR, currently a principle broker) had ever seen one of these "master settlement statements". My question is (I couldn't decipher from HUDs website the answer) does RESPA require a HUD-1 for ALL real estate transactions (I'm in VA, but state doesn't matter since RESPA is a federal regulation).
2007-10-25 09:09:43 · 3 answers · asked by DP1980 2 in Business & Finance ➔ Renting & Real Estate
RESPA covers loans secured with a mortgage placed on a one-to-four family residential property. These include most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit.
Cash sales are not covered by RESPA.
2007-10-25 09:26:54 · answer #1 · answered by acermill 7 · 2⤊ 0⤋
I work in Texas and have been in Real Estate for almost 30 years. It is unusual to use anything but a HUD 1 because we all know that statement form. But it is not required in all closings. The title company usually does one anyway because we all are familiar with them. I think the last closing I had with another form was about 2 years ago.
2007-10-25 16:26:31 · answer #2 · answered by glenn 7 · 1⤊ 0⤋
While this is not common, it is an acceptable document to satisfy RESPA regulations, as cash sales are not covered under RESPA guidelines.
2007-10-25 16:29:13 · answer #3 · answered by Anonymous · 1⤊ 0⤋