Can I use the HUD-1 Settlement Statement to confirm the terms of my mortgage?

UPDATED: Jun 28, 2012

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Can I use the HUD-1 Settlement Statement to confirm the terms of my mortgage?

I just learned the 1st monthly amount on my statement does not match the figures in the Settlement Agreement HUD-1. I have a fixed loan. The Settlement Agreement explicitly gives amount for principal, interest, insurance and taxes for the 1st loan payment. Payment is due in about a month. If I pay what the statement tells me to pay I will default in terms of the loan agreement documents; there will not be enough money to cover escrow; an incorrect amount of principal will be applied to the outstanding loan, and I will pay more interest that is not required. What can I do?

Asked on June 28, 2012 under Real Estate Law, Pennsylvania


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The HUD-1 statement that you are referring to deals solely with the real estate transaction that you closed either a purchase with a loan obtained or a refinance of an existing loan. Such statement cannot be used to confirm the terms of your loan.

It is used to confirm the debits and credits out of the presumed formal escrow that you had on the real estate transaction you are writing about.

To confirm the terms of your loan, you need to carefully read your promissory note and calculate what your monthy payment would be based upon the interest rate and the loan's term with your lender. For additional questions that you may have, I suggest that you consult with a real estate attorney.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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