Posted by Elijah818 on 8/18/04 5:53pm
Msg #6267

wet close/dry close?

Filling out a registration form from a signing agency I was asked what type of signings I had performed. On the list of choices was dry close ,wet close, HELOC & RESPA. Being new I'm stumpted. Thanks for any help!

Reply by CA_Notary on 8/18/04 7:02pm
Msg #6271

HELOC - Home equity line of credit

RESPA - Real Estate Settlement Procedures Act. I have no idea what this means in signing terms.

Wet close/dry close - Not 100% sure about this, but I think a wet close refers to funds being due at the signing, and a dry close means no funds are due.

Reply by PAW Notary Services on 8/18/04 7:12pm
Msg #6272

Wet Close - Funds are disbursed at closing. This is normally for a purchase when you have both buyers and sellers or for a new home purchase when the seller (builder) isn't there. There will be monies distributed to the RE agent, seller, down payment and other settlement funds disbursed.

Dry Close - Funds are not disbursed at closing. With purchases, there are other arrangements in place for the distribution of the monies.

Typically, for refinances, 2nd mortgages, etc., collecting the funds from the borrower is not considered a "wet" closing as funds are not disbursed. Disbursement happens on funding day or when the Settlement Officer settles the accounts, cuts the checks and mails them or sends wires for payoffs, etc.

HELOC = Home Equity Line Of Credit - A loan or credit line against the equity in the property.

RESPA = Real Estate Settlement Procedures Act (http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm) - Rules and guidelines for the settlement of property loans.

Paul/FL

Reply by carol NJ on 8/18/04 9:24pm
Msg #6279

RESPA: There is one particular signing service that uses SA's for what they refer to as RESPA's - which is not the actual closing of the loan, but the signing of the application docs, disclosures, vreifying ID and picking up all supporting documents, such as pay stubs, statements of assets, statements of any loans or credit cards to be paid off. easy stuff.

Reply by Elijah818 on 8/18/04 9:42pm
Msg #6282

Thank you everyone!