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Unfortunately, the HUD-1 has gone the way of the dinosaur. Now consumers get a Closing Disclosure Statement, which is infinitely harder to read.

Take a look for yourself. https://files.consumerfinance.gov/f/201311_cfpb_kbyo_closing......


Looks like that's the disclosure that buyers get - with loan details, etc. Here's the one for sellers, which is simpler (and only 2 pages, so no page 3!): https://files.consumerfinance.gov/f/201311_cfpb_kbyo_closing...

On this disclosure, to calculate the property taxes that can be deducted:

Start with the property taxes paid by the estate, then add any property taxes documented in the "Due from Seller at Closing" section and subtract property taxes documented in the "Due to Seller at Closing" section.

It could be that the closing company will use the longer, more complex disclosure for the seller, just so they don't have to have 2 different forms. In that case, you would have to use the dreaded page 3, but only the right hand side of the bottom part. You would follow the same calculation as outlined above:

Start with the property taxes paid by the estate, then add any property taxes documented in the "Due from Seller at Closing" section and subtract property taxes documented in the "Due to Seller at Closing" section.

My biggest beef with this form is page 3. The lender gets this version of page 3. The consumer gets a different version where page 3 is mostly blank lines for details of items, such as a loan payoff or other payments from the loan proceeds. It is an abomination of a form.

I went and looked at the closing docs from the last mortgage I closed on, and lo and behold, I did get this form. As a consumer, my page 3 looked the same as the form that was linked to (the lender's version), so maybe different closing/title companies provide different versions?

My time to deal with these transactions has more than doubled, and I have to be extremely careful (to the point of making my own excel spreadsheet) to be sure I capture all of the important information and that I can balance the transaction.

When going through the closing, the new disclosure form appeared to me to be similarly confusing to the HUD-1 form, so I guess I just figured it was a new look for the same form, and hadn't realized that it now had a new name. I have always had a love-hate relationship with the HUD-1 (lots of information, but the layout and headings made it very confusing), which has forced me to put together spreadsheets to make sure things balance. I don't think anything about that relationship changes when substituting the new form for the HUD-1.

AJ
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