Posted by smokie456 on 5/13/10 6:12pm
Msg #336397

Doin a cash closing

Hi,

Never did a cash closing. Can someone explain what it is and how it's different than a refinance?

Thanks

Reply by desktopfull on 5/13/10 6:24pm
Msg #336399

Generally, you will receive a certified check for full payment and there is usually only ten to 12 pages to get initials on and the ones I've done there have only been 2 or 3 notarizations. Usually in and out in 15 minutes.

Reply by smokie456 on 5/13/10 6:32pm
Msg #336400

What about wire transfer. Would I wire the funds into the account with the information supplied or does the buyer?

Reply by jba/fl on 5/13/10 6:38pm
Msg #336401

The buyer. n/m

Reply by smokie456 on 5/13/10 6:52pm
Msg #336406

Re: The buyer.

Thanks for the info!

Reply by MW/VA on 5/13/10 7:01pm
Msg #336409

I also have done a few & they were very easy. They're only a few pages & a couple of notarizations. The buyers generally wire funds or have a certified check. Super easy compared to a purchase or refi where there is a full set of loan docs.

Reply by smokie456 on 5/13/10 7:05pm
Msg #336412

Thanks for the information. I appreciate the civil reply. Sometimes its hard to ask questions when you get smart alecks that think they got everything down pack like they were born with all the answers. Can't stand those type of folks. Always one who wants to try an belittle others. thanks again!

Reply by LindaP/OH on 5/13/10 6:42pm
Msg #336402

Cash closings can be extremely easy, or very difficult. The thing that is disturbing here is that it seems to me you are accepting closings without really knowing what you are doing. There is no room for error on these, they will fund sometimes immediately and here you are totally ignorant of the processes. You are opening yourelf and OTHERS to unnecessary liability Please, before you inflict yourself on the general public, GET SOME TRAINING!!! Do yourself a favor, start here with the orange search button and read!

Reply by Sharon LaPorte on 5/13/10 6:49pm
Msg #336405

I think I said this was new to me and I'm looking for someone with knowledge to help me. The companies that have inquired said they would give me all the instructions but I want a fellow notaries advice as well. Never hurts to ask one of your own! I'm not looking for any liabilities just want to be sure what title company is saying is legit.

Reply by LindaP/OH on 5/13/10 7:02pm
Msg #336410

Sharon, if the hiring entity is giving you instructions, you should follow their instructions exactly, it is not our job to determine the legalities of their job; don't try to second guess them, you won't have all the information. Just make sure you can document who told you to do whatever, cover your behind. If you follow their instructions exactly, the worst that can happen to you is that you may have a resign and they will need to pay you again.

Reply by Moneyman/TX on 5/13/10 8:19pm
Msg #336445

Not necessarily Linda

In general, yes, one should follow the instructions given. However, if the instructions are not legitimate, such as back dating, they should be researched out and if in fact they are asking someone to do something such as this, then, NO, you should not follow their instructions blindly.

I think Sharon was asking for clarification on a signing job to ensure she would be performing the job as correctly as possible. We have all had SS companies tell us to do certain things that, while not intentionally asking us to do something that would be against our states laws, may actually end up being just that. In those cases, regardless of the documentation of who said what, if we perform the act we are the ones legally responsible if the preformed act is in opposition to our state laws.

The instructions given, may be correct, however, if one is not sure, then asking others not only helps to gain clarification but also shows due diligence on the part of the notary.

And yes, I do agree that if following their (legal) instructions end up requiring a resign, they should be charged again.

Reply by PAW on 5/13/10 7:48pm
Msg #336426

Major differences

First, this is purchase closing meaning that once the documents are executed, there's no turning back. No RTC. It's a done deal.

Second, the HUD must be complete and accurate. I believe NY is a table funding state, so funds are typically disbursed the same day as the closing. This may require certain documents to be faxed by to the title office so disbursement can take place. Some times, the disbursement is made the following day. Keys are not always provided at the closing if the disbursement is delayed. Check with the title company. Additionally, there may be issues with the HUD and the buyer typically wants to review the HUD line by line.

Third, there are a couple of ways the closing is done. Many times, it is both buyer and seller at the table. This means more time and headaches may come up, especially if attorneys and real estate agents are present at the closing. Sometimes, it is only the buyer at the table, sometimes just the seller. The seller is responsible for signing the deed (and having it notarized). The buyer may need to sign some affidavits that will require notarization. Rarely, the buyer signs or initials the deed to ensure the vesting is properly stated.

Fourth, there will usually be funds brought to the table by the buyer. It's a cash closing so the funds need to be available at the table. The buyer often brings a certified or cashier's check for the amount shown on the HUD. Make sure the "Pay To" is the title company handling the closing. Some times the buyer will have wired the funds to the title company. In that case, the buyer typically needs to provide the verification that the funds were wired and accepted. Often, that verification document needs to be faxed to the title company from the table, along with a signed and executed HUD and possibly some other documents.

Having said all that, most cash purchase closings go off without too much hassle. (REO's are the easiest, in my estimation. New house purchases are the most difficult.) I'm sure you will do just fine.

Reply by Ernest__CT on 5/13/10 10:24pm
Msg #336479

Re: Major differences

PAW has given very good information.

You may hear the terms "Wet signing" (or "Wet closing") and "Dry signing". "Table funding" is another term for "wet signing". A "Wet state" is one in which the funds must change hands as soon as the documents are signed. Wire transfer USUALLY works for a "wet signing". Connecticut, along with other states, requires table funding.

Reply by Dorothy_MI on 5/14/10 6:37am
Msg #336501

Question, Ernest

Even if it's REO property? Michigan is a table funding state EXCEPT all the REO's that I've done have been escrow closings. I can always tell when it's a first REO for the RE agent as they ask me for their commission check.

Reply by PAW on 5/14/10 7:53am
Msg #336506

Re: Question, Ernest

REO closings may be a bit different. At least that's what I've found here. Of the last bunch of REO closings I did, about half disbursed the day following the closing. I honestly don't know if there is something that had to take place after signing and before disbursement or not. Technically, all closings are done out of escrow, it's just who is managing the funds and how they are managed. With a standard wet closing, funds are deposited in some sort of escrow account, usually held by the title company, escrow company or settlement agency. Disbursements are made from that account. How the escrow account is managed varies among companies and states.

Reply by MikeC/NY on 5/13/10 9:50pm
Msg #336474

Where are you in NY? If you're in the NYC metro area, you may not be able to do this...