Question
Closing Disclosure Form for Problem 8 Shaded cells are for you to fill in Date 6/8/23 Borrower's tranaction Seller's Transaction Borrower Seller Due from borrower
| Closing Disclosure Form for Problem 8 | ||||||||||||
| Shaded cells are for you to fill in | ||||||||||||
| Date | 6/8/23 | |||||||||||
| Borrower's tranaction | Seller's Transaction | Borrower | Seller | |||||||||
| Due from borrower at closing | Due to seller at Closing | Closing Costs Details | Pays | Pays | ||||||||
| Sale price of propety | Sale price of propety | Loan | ||||||||||
| Origination Fee | ||||||||||||
| Closing Costs Paid at Closing (J) | $0.00 | |||||||||||
| Adjustments for items paid by seller in advance | Adjustments for items paid by seller in advance | Discount loan fees | ||||||||||
| Taxes | Taxes | Appraisal Fee | ||||||||||
| Assessments | Assessments | Credit report | ||||||||||
| Homeowners insurance (if assumed by buyer) | Homeowners insurance (if assumed by buyer) | Flood Certification | ||||||||||
| Gross Amount Due From Borrower | $0.00 | Gross Amount Due to Seller | $0.00 | Survey | ||||||||
| Structure Inspection | ||||||||||||
| Adjustments for Items Paid by Seller in Advance | Adjustments for items Paid by Seller in Advance | |||||||||||
| City Taxes | City Taxes | Prepaids | ||||||||||
| County taxes | County taxes | |||||||||||
| Assessments | Assessments | Prepaid Interest (# days * daily rate) | ||||||||||
| Mortgage insurance premium | ||||||||||||
| Gross Amount Due to Seller at Closing | $0.00 | Homeowners Insurance Premium | ||||||||||
| Paid Already by or on Behalf of Borrower at Closing | Property Taxes | |||||||||||
| Deposit | Reductions in Amount Due to Seller | |||||||||||
| New Loan | Closing Costs Paid at Closing (J) | $0.00 | Initial Escrow Payment at Closing | |||||||||
| Existing Loan Assumed | Existing Loan Assumed | Homeowners Insurance | ||||||||||
| Second mortgage from seller | Second mortgage from seller | Mortgage Insurance | ||||||||||
| Property Taxes | ||||||||||||
| Other | ||||||||||||
| Adjustments for items unpaid by seller | Adjustments for items unpaid by seller | Deed Preparation | ||||||||||
| Adjustments for Items Paid by Seller in Advance | Adjustments for Items Paid by Seller in Advance | Owners Title Insurance | ||||||||||
| City Taxes | City Taxes | Pest Inspection | ||||||||||
| County taxes | County taxes | Real Estate Commission | ||||||||||
| Assessments | Assessments | Recording of Mortgage Satisfaction | ||||||||||
| Rents collected but owed to buyer | Rents collected but owed to buyer | |||||||||||
| Interest on loan assumption | Interest on loan assumption | |||||||||||
| Total Paid by/For Borrower (K) | $0.00 | Total Reduction Amount Due Seller | $0.00 | Abstract | ||||||||
| Survey | ||||||||||||
| Cash at Settlement from borrower | Cash at Settlement to Seller | Deed Preparation | ||||||||||
| Total Due from Borrower at closing (K) | $0.00 | Total Due to Seller at Closing | $0.00 | Owners Title Insurance | ||||||||
| Total paid already or on behalf of borrower at closing (L) | $0.00 | less reductions in amount due seller | $0.00 | Pest Inspection | ||||||||
| Real Estate Commission | ||||||||||||
| Cash from Borrower | $0.00 | Cash to Seller | $0.00 | Recording of Mortgage Satisfaction | ||||||||
| Title Services | ||||||||||||
| Real Estate Commission | ||||||||||||
| Recording Fees | ||||||||||||
| If loan assumption, there will be interest unpaid by the seller - | Deed | |||||||||||
| this would be from the first of the month to the date of closing. | Mortgage | |||||||||||
| Loan balance would be amount paid on behalf of borrower | Transfer Tax Deed | |||||||||||
| and reductions in amount due to seller | Mortgage note stamp tax | |||||||||||
| Mortgage intangible tax | ||||||||||||
| Total Closing Costs (J) | $0.00 | $0.00 |
Given the following situation and facts, complete a closing settlement statement similar to that si in in L Exhibit 13-4. On May 15, 2023, Eric Martin signed a contract to purchase rental house for $195,000. Closing is to occur on June 8, 2023, with the day of closing to be counted as a day of ownership by the buyer. Eric can assume the seller's first mortgage, which will have a balance offs 149,000 during June. The seller, Reuben Smith, has agreed to take a second mortgage of $30,000 as part of the payment at closing. Eric paid an escrow deposit of $10,000 when he signed the purchase contract. Other pertinent facts include: a. The June interest on the first mortgage is $745, which will be paid at the end of the month. b. Reuben paid a hazard insurance policy for the calendar year 2023. The premium was $850, and Eric has agreed to purchase Reuben's interest in the policy. c. The monthly rental of $1,250 has been collected by Reuben for June. d. The total amount of property tax for 2023 is estimated to be $2,200. The tax will be paid by Eric at the end of the year. e. The broker will pay the following expenses for Reuben and will be reimbursed at the closing: Abstract continuation. $85 Attorney's fee $300 Deed stamps (tax). $1365 Brokerage commission (6%) $11,700.00 f. The broker will also pay the following expenses for Eric and will be reimbursed at the closing: Attorney's fee. $250 Deed recording fee. $6.00 Mortgage recording fee. $10.00 Mortgage note stamps (tax) $682.50 Intangible tax on mortgage. $390.00
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Financial Management Principles And Applications
Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.
10th Edition
0131450654, 9780131450653
