What is "Sellers Closing Funds"and why is it credited to seller? Is that to be deducted from the Contract Sales Price to calculate gain?
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What line item are you looking at on the HUD-1 statement? Is it in the Seller's Column?
Sandy -
The seller probably agreed to pay up to $XXX of the closing costs normally associated with the buiyer, so this is the adjustment for that amount. There's no consistency in how that figure is accounted for on most closing statements. Sometimes it's a single entry, and other times it is spread around on the HUD-1. But it would help if you tell us the line number(s) it appears on.
If my guess is right, it does reduce the gain on sale."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Ln 403 under Gross Amount Due to the Seller
It appears under the "Summary of Sellers Transactions" and then under "Gross Amount Due to the Seller".
Line 403 Sellers Closing Funds.Comment
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