Vendor · Chicago, IL · Member since 2015 · 82 posts · 22 votes
I was looking for a title company here in Illinois that does dry closings. Now I was under the impression dry closings were prohibited in Il., but I spoke with a company out of Virginia that sends out a notary to where ever you're at and will close both one day and fund the next day when all funds are received. Has anyone heard of this and is it legal.
Barrington, IL · Member since 2010 · 204 posts · 54 votes
7y
@Lou Gonzales @Mark Faustrum thanks for the mention.
Our title company can dry close but Typically that just means funds aren’t wired in yet. So i would need more details because it’s an odd request.
If LOU you need a double close to have an end buyer fund a deal, we do those every day.
We wouldn’t intentionally have closing without the money with intent to wait for it as at that point your just waiting for a wire and if the buyer didn’t have funds ready chances are it would get rescheduled until the money could be sent.
that said, there’s plenty of times that docs are signed at the closing table by all parties and the wire or money hasn’t hit yet and in those cases no one gets their check until the money hits the title company escrow account.
Barrington, IL · Member since 2010 · 204 posts · 54 votes
7y
@Lou Gonzales @Mark Faustrum thanks for the mention.
Our title company can dry close but Typically that just means funds aren’t wired in yet. So i would need more details because it’s an odd request.
If LOU you need a double close to have an end buyer fund a deal, we do those every day.
We wouldn’t intentionally have closing without the money with intent to wait for it as at that point your just waiting for a wire and if the buyer didn’t have funds ready chances are it would get rescheduled until the money could be sent.
that said, there’s plenty of times that docs are signed at the closing table by all parties and the wire or money hasn’t hit yet and in those cases no one gets their check until the money hits the title company escrow account.
Vendor · Chicago, IL · Member since 2015 · 82 posts · 22 votes
7y
I was wondering how a simultaneous close would work in Illinois, if I was getting the money for the buy from the sale and didn't have transactional funds.
Lender · Tampa, FL · Member since 2013 · 228 posts · 95 votes
7y
@Lou Gonzales
In regards to dry funding - that is essentially when a title company uses the end buyers money to fund the a>b transaction. To the best of my knowledge this practice is not illegal, however most title companies won’t fund this way because of rules passed down by their insurers. Some title companies, especially those with lots of experience with investors will dry fund as long as both transactions are being closed with them.
If you’re looking for a title company that will dry fund, my best guess would be to reach out to all the investors & wholesalers in your area for title company referrals and start beating up the phones. You’ll find one eventually.
In the event you have trouble finding someone we lend transactional funding with rates starting at 1%. Reach out if I can be of any help or if you have any questions.
Lender · Troy, MI · Member since 2019 · 432 posts · 147 votes
7y
@Lou Gonzales Earlier title company members in this discussion has mentioned they can do this 'Double Closing' or 'Simultaneous Closing'.
The transaction from A>B (Seller-Buyer) and B>C (Buyer-Final End Buyer) has to be done with transactional funding for B (buyer). The C buyer generally has to be all cash to make this happen without much of a hiccup.
We can be one of your resource and help you with the transactional funding.