My girlfriend and I purchased our first home last July and in August we submitted for our first-time home buyer credit.   In October we were notified that our claim had been selected to be reviewed by the examiner and that we needed to submit copies of our HUD-1 settlement statement.  Yesterday we were notified that our claim was rejected because our HUD-1 did not have the signatures of all parties involved.  I have looked at our HUD-1 statement and at the 2010 HUD-1 on the HUD website and do not see anywhere that requires a signature. 

Is the IRS asking us to produce something that doesn't exist? or did our mortgage broker / closing agent make a mistake by not having us sign something?

The person (title company or attorney) that closed the transaction for you will have a signed HUD by all parties.  Sometimes at closing, they give you unsigned copies and after the closing is completed, should have provided the signed copies.  Obviously this did not happen.  Contact them.

Did you only submit the first 2 pages of the HUD-1 that shows all the numbers?  I thought these 2 pages would be the only ones required by the IRS, but there should be at least one other page with your closing package that states you have reviewed and received a copy of the HUD.  Look over your documents again and if you can't find it than the mortgage company should also have a copy that they can forward on to you.  The lender would have required you to sign this so I doubt it would have been missed or else it wouldn't have funded. 

Ralph Meyers:

I thought these 2 pages would be the only ones required by the IRS

I had a conversation yesterday with some tax preparers about this issue.  They said that in the past they never received signed copies of the HUD 1 and as mentioned previously this is what is typically given to the borrower at closing, at least in our area.  However, to get the tax credit (because of all the fraud that has taken place) they now have to have a HUD 1 with all signatures to file with the return.  One of them had called the closer and received the HUD 1 with only the buyers signatures and they said that the IRS instructions only say all signatures.  They don’t know if that also means the sellers signatures as the IRS has provided no guidance or additional examples so they are going to go back to the closer and request those.  They say that the instructions are poorly written and it’s time consuming for them.   It’s taking many months for buyers to receive the tax credit from the government.  It looks to me like this delay isn’t helping the economy.

I have spent most of the day today trying to call HUD, the IRS, my mortgage broker, and my escrow agent.  Both my mortgage broker and escrow agent have told me that the final HUD-1 is not a signed document.  So its not that I'm missing a page or don't have the final signed copy... I have a HUD-1 form without any signatures.  I don't know if this is a regional thing (I'm in CA and I think they find a way to make everything a little more complicated out here).  I have had numerous people tell me this is not possible.  I contacted a tax advocate and she rather rudely told me that everyone there, had bought a house and they all signed their HUD-1 forms (I'm glad they had them in their desks so they could check for me) and that they couldn't help me with my inability to follow directions.

So... I went to the HUD website and downloaded their 2010 HUD-1 form (link below)

http://www.hud.gov/offices/adm/hudclips/forms/hud1.cfm

Maybe its just me... but I cannot find anywhere on the document that requires signatures.  I also read through the instructions and couldn't find anything about having all parties sign the document.

I then went to the IRS's website and read what they are requiring to be submitted for people who are submitting for the first-time home buyer credit this year, and it lists a HUD-1 Settlement Statement, saying it has to be signed by all parties.  It just seems to me that there is a major disconnect between HUD and the IRS that could prevent first-time home buyers like myself from receiving the credit. 

The real kicker for me is that we used an FHA loan to buy our home... so you would think the government wouldn't have too much trouble proving that we did actually buy a home since they are insuring our mortgage.

I really don't know what to do at this point because I can't get past the fact with anyone that I speak with I need to submit a signed HUD-1 form and the fact that I don't have one (and it doesn't appear that I should be required to have one).  When I purchased the home back in July... there was no mention that I needed to have a signed HUD-1 (both my broker and closing agent are looking to find a way to revise the way they are handling first-time home buyer homes... but its not going to help me out much).

Christopher Janson:

When I purchased the home back in July... there was no mention that I needed to have a signed HUD-1 (both my broker and closing agent are looking to find a way to revise the way they are handling first-time home buyer homes... but its not going to help me out much).

There was so much fraud with this program that the IRS changed the rules.  However, in our area a preliminary HUD 1 is signed (the first two pages don't have signatures lines so there is an attachment that is signed).  Then the final HUD 1 is issued with no signature but certified by the escrow agent.  Check back with your escrow agent to see if they can provide that along with the final HUD 1 that they certify.

Bryan,

Thank you for taking the time to try to help me out with this. I cannot tell you how much I appreciate it. You have been a voice of reason that has hopefully parted the clouds of confusion between the IRS and myself.

I think that your answer may have solved my problem. I contacted my escrow agent and they said that they do have all parties sign the preliminary HUD and that they think (i'm still a little nervous on the 'think' part) they should have that in storage somewhere. They said that they do add a signature page to the preliminary HUD-1 form that contains signatures; however since the numbers end up changing, the typically only give the buyer the final HUD-1 (which doesn't have the signatures but is certified by the escrow agent like you said) which was all that was used for tax purposes previously.

It looks like I'm going to have to make some calls to apologize to people I yelled at today... but in my defense, the letter from the IRS did request my "final settlement statement" and the signature page is something that the title company adds to the HUD-1 for the preliminary HUD-1 and it isn't a part of the HUD-1 form found on HUD's website.

Thank you again!!!!

I also think your mortgage broker's company would have saved a closed file containing everything that was signed at closing.  I'm not sure on the exact timeline and if things are different in CA, but in MI all of the brokers are required to keep copies of closed files for a number of years.  I recently had a problem with an old escrow account that I never received after selling an investment property where the mortgage servicer had said I didn't receive it because of a pre-payment penalty.  I went back to my broker who emailed me the complete closing package and I was able to find the page that excluded me from a pre-payment penalty, sent it on to the servicer and they paid me back what was owed.  I happened to look at it again after reading about your problems and was also able to find a page following the 2 page HUD-1 that had everybody's signatures.

Maybe your broker is unaware of this, so if the escrow agent can't find the old file than I would contact them again and tell them to send you the closed file and look for yourself whether or not there is a separate page about reviewing and receiving the HUD with signatures.  If he's not willing to do this than ask to speak to a manager there to help you because he may not have all the facts.

Hi Bryan- It looks like you have helped a few people in this forum and I am hoping you can help me as well!

So I am having the same problem as others in this forum. I purchased a house and am trying to claim the tax credit. The HUD1 Settlement Statement only has my signature on it and the IRS is requiring ALL signatures.  I contacted the title company and explained the situaiton  and asked for the seller's HUD1 which would have her signature on it and they refused to surrender the document because of privacy laws. They told me that a "Final Certified HUD-1" signed by the escrow officer would work. Do you know if that will work to claim the  tax credit? If not how can I get a document that they refuse to give me because of privacy laws?? AHH!! Stressed!!! Help :) Thanks

In a purchase transaction, there is a buyer HUD and a seller HUD.  This is to prevent anyone knowing the sellers business (what was paid off or how much they received) and is normal.  Have the agent put that in writing and send it to the IRS along with you HUD signed by the agent.  You should be fine.  I would also include a copy of the recorded deed, I am sure you have that as well.

Chris Sewell:

They told me that a "Final Certified HUD-1" signed by the escrow officer would work. Do you know if that will work to claim the  tax credit?

The closer doesn't really know what will "work" as the IRS specifically says in big bold letters in their insructions for filing the form 4506 "if you do not attach the documentation, the credit may not be allowed.  Attach a copy of your settlement statement showing all parties' names and signatures, the property address, the contract sales price, and the date of purchase."

Logic would indicate that the Final Certified HUD-1 should work along with the items listed by Jan above.  However, the government doesn't always follow logic.   I spoke with a CPA and he says that hesitates to say if anything other than what the IRS asks for will work because if it doesn't you won't know for a few months because of the length of time it is taking the government to process the tax credit information.  If it gets kicked out you have to go back to the IRS with more documentation.  By the way, in my area the HUD 1 lists the charges and credits for both the buyers and sellers but, they may not sign the same attachment.

Here is the link to the instructions http://www.irs.gov/pub/irs-pdf/i5405.pdf .  See the top of the second page.  You might provide this to the closer and see if that makes a difference as it doesn't say anything about a Final HUD 1 or just that the closers signature will work.  It would make it much simpler if the IRS would give some examples of any other documentation that is acceptable.

Good luck

If you are not having any luck with the title company try contacting your lender/broker.  They typically have to have these documents on file to satisfy state regulations.  If your mortgage has been sold to another lender a Signed HUD-1 by all parties is required in order to sell the loan.  I know it's the governmnt and they don't tend to think logically but you might also want to see if a warranty deed will work as well.  That document shows when ownership was transfer on the house and is typically public record.

The new form does not require signatures. You would have to contact the IRS about this change that was effective in 2009.

Right...   good luck with changing the IRS's mind on that one!  Believe me and the other posters above, there's a signature page required.

Good Day everyone.

I just read on the IRS website (for the 2009 tax extension credit) that they now know that some areas do not require the signatures of all parties on the HUD1 form, but that the buyer should sign it prior to sending.

I also am in California and we got the HUD1 from our Mortgage company and there are no signatures on it. The stamp that is there is not legible at all so I am thinking that this will not be acceptable to the IRS, somehow I think the stamp is important. Like I did not fake the document.

I am going to call the escrow company as well to see if I can get a clearer copy.

I will also say that the IRS was rushed into this break for the people and for all the kinks to be worked out takes time. I closed on Oct 5, 2009 and then we filed for the break on 2008 taxes. Should have waited and done it with 2009 because I got the letter of examination from the IRS at the beginning of March and have 30 days to cough up the back up docs that the IRS needs to weed out the fraud. Terrible that folks have to be sneaky to screw it up for all the folks that are on the level.

Since I am very talkative here I will just ask. Is there anyone else in California that has already been through this are the signatures required in California, and received their check?

Check with the escrow agent who assisted you on this. Sometimes when there are many things going on at once, we tend to forget some things we did...including signing documents. Ask your agent if there were HUD documents with signatures of all parties involved. This has no guarantee, but it's still worth a shot.