What Is the Connection Between HUD & Escrow?

HUD and escrow are connected in a few very specific ways. Find out what the connection is between HUD and escrow with help from a licensed realtor in this free video clip.

Part of the Video Series: Housing and Rental Help

Video Transcript

Hi, my name is Lana Groetsch with Keller Williams realty, and today we'll be discussing what is the connection between HUD-1 and escrow. First off, let's start by definitions. A HUD-1 is a form that itemizes all charges imposed to a borrower and a seller in a real estate transaction. An escrow is a reserve account for the borrower's insurance, taxes and possibly home owner's dues that are to be paid out monthly by the lender. Now how they correlate together on the HUD-1 statement at the time of closing, the escrow will show up on the borrower's side of the form stating how much is to be placed in the reserves for the taxes, for the insurance and possibly for the home owner's dues.

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