Posted by Peg on 8/21/05 4:01pm
Msg #60612

Wet/Dry Closing

I have done several seller/borrower's closings now, some with money due and others without. The one I just did the other day was the first time I ever heard the term wet/dry. It was in reference to where the closing took place as to weather it was wet/dry.

Now what I want to know is where I can learn the correct meaning to the wet/Dry closing. Is it just a slang term used by Title Companies? Can someone EDUMACATE ME PLESASE THANKS SO MUCH!!!

Peg

Reply by Hampton/CA on 8/21/05 5:12pm
Msg #60623

A wet closing is when the borrower is getting so much money back, that they drool on the paperwork. A dry closing is anything signed in the desert.

Reply by Shannon/VA on 8/21/05 5:59pm
Msg #60626

FUNNY. I liked that.

It has been my experience that a dry closing is when there are no funds to collect or disbure at closing, such as a refi with a 3 day resission.

A wet closing is when there are funds at closing to be disbursed, such as a sale where the seller receives proceeds the same day or a refi on rental or investment property where there is no recission period and funds are disbursed same day.

The only thing is that funds can not be given unless the title has been updated prior to recording and the update was clear. But that is not anything the notary worrys about and since the notary does not disburse the money, It really isn't anything to worry about.

Now if you have to collect money at the closing, I do not consider that a wet closing because the money isn't going out, it is coming in. Here in Va you have to be crespa certified to be able to handle funds as a notary, at closing, such as collecting money form the borrower, refi or not. Now if I am working as a notary for an attorney's office, I can collect because I am working under the attorney and they are crespa certifed.

Now keep in mind I am in Virginia, so this may vary from state to state!!!

Reply by Rick in VA on 8/22/05 8:55am
Msg #60710

Atn: Shannon/VA Re: Wet/Dry Closing

Shannon, Where is it documented that you have to be CRESPA certified to collect moneys at closing? I see nothing in the handbook about it, but, of course, there really isn't anything in that anyway. (I know I need continuing education, but it's tough to get that in VA

Reply by Sharon/CA on 8/21/05 7:05pm
Msg #60630

LOL... out of the three explanations I choose Hamptons... I liked it the best... teee heee

Reply by Michael Murray P.A. CNSA on 8/21/05 6:06pm
Msg #60627

Peg...As a realtor I have seen the term dry closing a lot and I have been in on many. Basically what it means is that the closing takes place but it doesn't fund. Usually because the parties are signing at different times or there was a last minute change which typically happens on a Friday closing and the lender can't get it funded at the time of closing. So we do whats called a dry closing. Most times it is done because people have such busy schedules these days that they don't want to have to rearrange everything again to sign the paperwork. Also it eliminates having to redraw all the paperwork because it's dated, if they don't go through with the "dry" closing all the papers have to be redrafted.

I can only assume that a wet closing in when the deal closes in a normal fashion. Everbody signs and the deal funds.

Reply by Peg on 8/21/05 6:45pm
Msg #60629

Re: Wet/Dry Closing TYVM

I misunderstood the explination that was given by the ss. thank you all very much for your repsonses. I think i have it now.

its all about the money not the place, maybe she was saying the place to calm the seller down and encourage her to sign. I know either way, she was happy i called so I handled it right. It was as you discribe, a Friday Night, after hours and no from me to the seller, just to the lender from the borrower. so I think what you have here makes sense with what took place. Thanks AGAIN !

Reply by Ali-IL on 8/21/05 7:20pm
Msg #60631

Re: Wet/Dry Closing TYVM

I used to sell real estate. What it meant was when money wasn't wired on time buyers and sellers closed but, those that were getting paid had to wait for it.

Reply by Shannon/Va on 8/21/05 10:30pm
Msg #60672

Sorry Michael, that is wrong. My definition is correct. I just looked it up in my real estate law books.

Reply by Michael Murray P.A. CNSA on 8/22/05 7:57pm
Msg #60898

My explanation says the same thing, different words, but the meaning is the same so I don't think it's fair to say I am wrong. My answer is worded different than yours but implies the same thing.

Reply by PAW_Fl on 8/22/05 11:24am
Msg #60772

Shannon's explanation is the correct one. It is all about monies being disbursed at the time of signing.

There are many reasons why a signing or closing would be "dry". Usually due to funding, in that the loan has not funded yet, therefore payments by escrow cannot be completed. However, there are other reasons. For example, in new home purchases, funding may be completed but the CO (Certificate of Occupancy) has not been issued by the county, which in turns hold up disbursement. There may be other reasons to hold off disbursing funds, even though the loan has funded. But you get the idea. It's all based on when monies are disbursed.