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Updated over 10 years ago on . Most recent reply
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Double Closing Process
Can someone explain the different between a "dry" and a "wet" double closing. For those of you who do double closings, which version do you use mostly?
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Dry and wet refer to whether or not the funds from the end buyer (C) are also used to cover the wholesaler's purchase from the seller (the A-B transaction). These are just made up terms with no official meaning, so I'm not sure which is which. I think "dry" means to use the end buyer's funds and "wet" means using a transactional lender to fund the AB transaction. But could be the other way around. If you use that terminology on a title company they're likely to be confused, too.
Double closings using just the end buyer's funds are much harder to do now. The title company wants to avoid any appearance of fraud.