500)    Reductions in Amount Due to Seller:

501)    Excess deposit (see instructions):  There is not typically an amount shown on this line.  It is there for unique circumstances.

502)     Settlement charges to seller (line 1400):

This amount is a transferred amount from line 1400 on Page 2 of the Settlement Statement.  We will discuss later how this amount is totaled.

503)     Existing loan(s) taken subject to:

This line is not used in typical loan closings.  It is an exception type line item.

504)     Payoff of first mortgage loan:

The amount shown on this side of the “loan payoff” amount.  If the seller had an existing mortgage on the house he / she has just sold, the payoff amount would go on this line.

505)     Payoff of second mortgage loan:

If the seller had a second mortgage, which is an additional loan, on this house he / she is selling, that loan would have to be paid off also.  The amount would be shown on this line.

506-509) Extra blank lines for unusual items unique to a loan closing only.

Adjustment for items unpaid by seller:

510)         City / town real estate taxes ______ to ______:

The amount of city / town taxes due from the beginning of the tax year to the closing date is shown on this line.  It is the amount for which the seller is responsible.

511)         County taxes ______ to ______:

The amount of county real state taxes due from the beginning of the tax year to the closing date is shown on this line.  It is the amount for which the seller is responsible.

512)         Assessments ______ to ______.

The amount of assessments due from the beginning of the assessment year to the closing date is shown on this line.  It is the amount for which the seller is responsible.

513-519) Extra blank lines for unusual items unique to a loan closing only.

520)      Total Reduction Amount Due to Seller:

The total of lines 501 through 519 is shown on this line.

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