Where did the money actually go?

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That's strange. You will normally sign a settlement statement which has a section called "Summary of Borrower's Transaction" and another section called "Summary of Seller's Transaction." These are sections J and K in the HUD-1 form. They should give you all the details that you need. I thought this form would be the same throughout the country and not specific to AZ. Please recheck the document you signed to see if you missed something.

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I don't know that you should just let it go. By law you are entitled to an accurate accounting. Take the HUD1 to the title company that handled the closing and ask them to explain it to you. You are probably just missing something but that doesn't mean you don't deserve an explanation. :cool:

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The HUD-1 is uniform as well as requirements to complete the form. In some areas and depending on the title company closing agent, one form can be completed for the seller and another for the buyer. Unless there are state requirements for disclosure for both sides, only the side applicable to that party needs to be disclosed. Like Bill P. asked, did you get what you wanted at the price you wanted? It's irrelevant how the other side split up proceeds, so long as you only paid wht you were required to pay and you did not incur liabilities on the deal. Sleep well! Bill

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Mary Ann, It could be negotiators fees that add part of the cost. Back taxes may add up to quite a bit, also. At any rate....does it really matter? Did you get the house you wanted at a good price? That is what counts most! Bill

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Legally, it all needs to be itemized on the HUD, so just ask the closing attorney for a draft of the HUD and that should answer your questions. If they refuse to give it to you or to explain where the money is going, find another closing attorney, and let them know you're planning to report them to the attorney general, as you're concerned about potentially being the victim of fraud... Worst case, you'll find out all the details at closing, at which point they have to give you a copy of the HUD.

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Do you have copies of the SS letter's? If so, were you listed as the buyer on the SS letter? Who is the title company? Is it Old School/Chicago Title? Was your purchase agreement (contract) made out to "owner of record", or was their an indivisdual's name? If it is the latter, you can try to search the public record to see if the seller of record was indeed the individual you contracted with. 1. Perhaps you contracted with the sellers originally, then after the fact, someone stepped in and negotiated the short sale and either perfected title and sold to you or wholesaled to you with a simultaneous close (using your funds). This could be mortgage fraud since your offer ( for a higher amount) was executed prior to a third-party intervening. 2. Since you had more than 20% down, you probably bought your house from a SS flipper. This is perfectly legitimate, though it should clearly have been disclosed to you prior to closing. In my opinion, you should contact your agent or the listing agent to get clarification. If you did not have representation yourself, then this is probably why your in the dark. If you did have representation, then start with your agent. If you receive no cooperation, then contact their designated broker and threaten to file a complaint with the DRE. Regardless of the scenario, I believe the transaction was not properly disclosed and may even have been purposely kept from you. Brokers carry errors and omissions insurance that would payout on this tyoe of claim becuase you could prove you paid $15K more than you should have. 3. More than likely, the $160K and $27K were NOT proceeds to the lender not sales price. The sales price still could have been $200K - $27K (2nd mortgage) - $12K ( Agents) - Closing costs = $160K ish. In my opinion, the numbers may not make sense to you because you may not have the entire picture and this transaction was probably legitimate. However, it is worth looking into becuase I still have questions like why did your agent commissions go from 2% to 6% percent? And, why did it take one year? So, I think you certainly did not receive any value for the time you spent waiting for your home at 6. Let us know.

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Did you buy directly from the previous owners? Or was a wholesaler involved? Could this have been a double close, and the HUD-1 you're seeing is only for the second closing (wholesaler to you)? Who's listed as seller on your HUD-1?

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This may be the law, but it's a horrible law. How can any party in the transaction verify the veracity of the entire transaction, and more importantly, how can the buyer or seller ensure the the closing company isn't working with one party to defraud another. For example, if the appraiser submits an invoice to charge the appraisal on the HUD, and his invoice is for $100 less than what I had expected to pay, how do I know that the extra $100 isn't going into the hands of the closing company or the other party?

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Thanks for validating my concerns. Why not fill out both sides of the HUD-1 form if there is nothing to hide? It burns me that I'm not entitled to know where my money went...oh I forgot I've let it go.

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You're right - I missed that. :cool: