Posted by taz on 1/14/06 8:58pm
Msg #88475

problems with RE Agents

I have been having problems with some of the RE Agents in my area's. It isn't about the closing itself, but it has to do with the disbursing of funds. I'm seeing more and more of Dry closings and the Agents are having fits at the table and causing the buyers and sellers to get upset. As we all know purchases can have a life of their own without this added problem. I'm just wondering if anyone can advise how many states are at dry closings. I'm located in PA. I believe WV is at completely dry closings. If any closers in PA are having the same problems please let me know. I have already started steps to get a class together for the RE Agents to understand the changing times and what they can expect in the future.
Thanks

Reply by Paul_IL on 1/14/06 10:56pm
Msg #88492

Speaking from an agent perspective I too would be pissed if I was expecting a commission check and then found out it was a dry closing. The agents should have been made aware of this before getting to the closing table. Obviously agents in your area are use to wet closings so what has changed? Is it only specific lenders?

Reply by ReneeK_MI on 1/15/06 4:56am
Msg #88501

In table-funding or 'wet' states the L/O or Mtg Broker, the T/A and the Lender are all aware as to whether or not loan is being disbursed at signing. Nobody is telling the R.E. Agent (or likely the buyers and sellers).

With the ability to do mobile closings at the last minute of the 13th hour - the Mtg. Broker or Banker is USUALLY the one making the decision to go ahead and close, and disburse later. If funds are being sent by wire, it can take 24 - 48 hours to get the wire sent/received (usually the bigger the company, the longer the time it takes - more steps to the process).

Sometimes it's a logistics issue - docs can be sent e-mail, but funds can't! Sometimes, it's a 'mobile close' issue, where someone (T/C or Lender) wants to SEE fax-backs before authorizing funding.

Always - it's a headache! Nothing like going to a purchase closing without money, and having to be the 'bad news' messenger =(

Reply by Janlee_MI on 1/15/06 6:15am
Msg #88502

Agents are not only looking at there commission. Now they have a seller who might not be able to purchase the next house. It can be a real pain for the Seller and the agent who has to go to the next closing. Or you have everything out of your home and waiting to move out of town and the check is the only reason you are staying around. Its not just the Real Estate Commission they are upset with.

Reply by Stamper_WI on 1/15/06 7:00am
Msg #88503

Often, by law or by independent contractor agreement, RE brokers are requiered to pay the RE agents within a short time period as well. Many of the commission checks are cut to the broker only. Kind of a catch 22 since the Broker often doesn't pay the agent until he receives the commission check......and as a former realtor, chickens get counted before they are hatched!

Reply by PA_Notary_II on 1/16/06 8:59am
Msg #88618

I have done many 'dry' closings and agree that it causes alot of grief. I have found that the TC is usually responsible for the wet/dry option. I have done closings where I had 5 pre signed blank checks and I made them out at the table. Then other times when the TC was running scared and said that the wire hadn't been rec'd yet when I knew it had. It seems the smaller and/or newer TCs are overly cautious with the funds. The biggest problem is the TC won't tell anyone that checks aren't going to be disbursed at closing...leaving the SA to take the heat. I always start the closing with the question...is everyone aware that no checks are being disbursed today? If the answer is in the negative, I immediately put the RE agent on the phone to the TC.

Reply by taz on 1/16/06 1:06pm
Msg #88663

thanks to everyone for the responses. I will keep this information to help me in the future.

Reply by Anonymous on 1/16/06 4:56pm
Msg #88697

I think I understand the Wet/Dry topic but can someone explain it for me?

I am getting ready to close and am looking for a local notary that I can choose. Don't like unknow people showing up at my door.

Problem of growing older/wiser!

Reply by PAW_Fl on 1/16/06 5:12pm
Msg #88698

Simple terms

Wet closing - money changes hands at the closing
Dry closing - money is disbursed at some predetermined time after the closing.

Wet state - a state that disperses funds at closing (most states)
Dry state - a state that disburses funds after closing in escrow (e.g. California)

Note: Not all closings in "wet" states, will be wet closings. If a lender hasn't funded a loan in time for the closing, the closing may proceed as a dry closing.

The collection of funds due at the signing table (as shown on the HUD), is not considered "funding" of the loan, and therefore, collecting the amount due is considered a condition of closing rather than funding.

Wet signature - original "inked" signature

Reply by Anonymous on 1/16/06 10:13pm
Msg #88723

Re: Simple terms

Thank you very much....

Very informitive. Are you a teacher Paw FL?

Reply by PAW_Fl on 1/17/06 9:09am
Msg #88748

Not a teacher, per se ...

No, I'm not a certified teacher in the aspect of teaching school. However, I've been involved in corporate training all through my professional life. This includes classroom training both in a corporate environment as well as a technical instructor in a university system. As a manager in the corporate world, teaching comes with the job, at least in my opinion.

Reply by BrendaTx on 1/16/06 10:12pm
Msg #88722

**Don't like unknow people showing up at my door. **

Believe me, the unknown people on your door step aren't always at ease either!!