HUD 1

Question 1

Credit to Buyer only (Buyer Receives Money)

Answer 1

• Principal Amount of New Mortgage

- Buyer’s Earnest Money

Question 2

Debit to Buyer Credit To Seller ( Seller Gets Money)

Answer 2

• Selling price of Property
• Refund to seller of prepaid water charges
• Fuel oil on hand (valued at current market price
• Prepaid general real estate taxes
• Prepaid insurance and tax reserve for mortgage assumed by buyer

Question 3

Credit to Buyer Debit to Seller ( Buyer gets money)

Answer 3

• Purchase Money Mortgage
• Unpaid water and other utility bills
• Unpaid principle balance if assumed mortgage
• Tenants security deposit
• Accrued interest on existing assumed mortgage

Question 4

Debit to Seller only

Answer 4

• Payoff of existing mortgage

Question 5

Prorated

Answer 5

• Accrued interest on existing assumed mortgage
• Fuel oil on hand( valued at current market price)
• Prepaid insurance and tax reserve for mortgage assumed by buyer
• Refund to seller of prepaid water charges and similar utility expenses
• Prepaid general real estate taxes