HUD-1 As a Marketing Tool - For Realtors

How Can HUD-1 Help You Generate Business?
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HUD-1 is a standard form you use very often. The form serves not just as a settlement closing statement, but also as a proof of payment of different tax deductions. Understanding the form and the tax deductible items and communicating them to your clients will help your clients to minimize their taxes and help you to build trust and get more business exposure.

What is the HUD-1
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HUD-1 is a form used by the settlement agent (closing agent) to itemize all incoming funds and all charges paid and accrued by a borrower and seller for a real estate transaction. When is the HUD-1 Issued?

The Real Estate Settlement Procedures Act (RESPA) requires that the form be issued in all real estate transactions in the United States which involve federally related mortgage loans. RESPA states you should be given a copy of the HUD-1 at least one day prior to settlement.

When Do Clients Need HUD-1 For Taxes?
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Clients use the information included in the form when they file their annual taxes. The filing deadline is normally April 15 of every year for the proceeding year. To allow the client enough time to file taxes using the HUD-1 information, it is recommended that a copy of the HUD-1 will be sent to the client in January.

Because the real estate transaction takes place during the year, usually long before filing the tax return, the HUD-1 given to the client at closing time could be lost or misplace. Sending the client a copy of the HUD-1 with a cover letter will be very helpful and time savings to the client.

HUD-1 Client Sample Letter
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The following is a sample letter you can use to send your clients:

[Date]

TAX TIME IS COMING

Dear [Client