Closing issue

[Eric Davis]

Closed on a house. Was supposed to get a check at closing. The title company said that the money was not ready and that they would deposit it into our account in a few days when it was ready. Is this normal?

[J Scott]

Old thread, but something to think about...

Sometimes -- especially on REO purchases where the bank will take their time signing the final HUD-1 -- you will be asked to sign a contract that says you are essentially "closing in escrow?"

That means that, while most of the closing was completed, some detail(s) aren't yet completed. This could be the signing of the HUD by a party who isn't present at the closing (again, REO purchases this is common), or it could be a lender wired the funds but the title company hasn't received them yet (it can take a couple hours), etc.

When this happens, you technically haven't completed the closing, keys shouldn't be exchanged, and checks won't be cut. Usually, within a couple hours or a day at the most, everything gets completed, and the title company will let both parties know that escrow is closed.

That said, I had a situation a couple years ago where I was making an REO purchase, and the bank took 8 days to sign the final HUD. *Technically* I wasn't supposed to be in the house during this time, but, the title company had my funds, and I wasn't going to sit around waiting, so I started rehab. Could have bit me in the butt if something happened, so I had to be comfortable with the risk...