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Real Estate Closing Question

Old 10-06-2016, 08:01 AM
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I appreciate the vast knowledge of THT folks.

I loaned money for someone to buy a house. That house closed this week. After payment of the loan and other expenses there was some profit. That profit has been given to the homeowner. As the lender my payoff hasn't happened yet.

As the lender we are getting different excuses, reasons, why the money hasn't been wired. Are there some protections if after the latest "reason", closing today for the Hurricane on the Florida East Coast my loan payoff money disappears?

The homeowner sold the house through a realtor, which I have read has some protections.
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Old 10-06-2016, 08:10 AM
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Do you have a properly recorded first mortgage and a mortgagee policy when you loaned the money? If so I would not be alarmed over a few days. However, it is unusual that seller received closing proceeds and mortgagee did not at the same time.
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Old 10-06-2016, 08:13 AM
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Were you listed on the closing documents as a loan?
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Old 10-06-2016, 08:18 AM
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You need to be talking to the closing attorney asking where the money is.

It's not out of the ordinary for an attorney to float on a payoff.
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Old 10-06-2016, 08:21 AM
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Originally Posted by mikefloyd View Post
Were you listed on the closing documents as a loan?
Yes
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Old 10-06-2016, 08:21 AM
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Originally Posted by Lobstercatcher229 View Post
I appreciate the vast knowledge of THT folks.

I loaned money for someone to buy a house. That house closed this week. After payment of the loan and other expenses there was some profit. That profit has been given to the homeowner. As the lender my payoff hasn't happened yet.

As the lender we are getting different excuses, reasons, why the money hasn't been wired. Are there some protections if after the latest "reason", closing today for the Hurricane on the Florida East Coast my loan payoff money disappears?

The homeowner sold the house through a realtor, which I have read has some protections.
Contact Fichton on this forum - he is a RE attorney
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Old 10-06-2016, 08:24 AM
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Originally Posted by Lobstercatcher229 View Post
I appreciate the vast knowledge of THT folks.

I loaned money for someone to buy a house. That house closed this week. After payment of the loan and other expenses there was some profit. That profit has been given to the homeowner. As the lender my payoff hasn't happened yet.

As the lender we are getting different excuses, reasons, why the money hasn't been wired. Are there some protections if after the latest "reason", closing today for the Hurricane on the Florida East Coast my loan payoff money disappears?

The homeowner sold the house through a realtor, which I have read has some protections.
I'm confused by your explanation.
You loaned money to someone that bought a house and has now sold it?
Or, you loaned funds to someone that just purchased the home?

If the former, the escrow company should have satisfied your loan by wiring you the funds.
The buyer taking funds from closing is immaterial, unless the latter scenario, and you expect him to pay back your loan.
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Old 10-06-2016, 08:26 AM
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Originally Posted by Lobstercatcher229 View Post
Yes
If you hold the first lien on the property they must pay you first to close and reassign the new title
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Old 10-06-2016, 08:29 AM
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Payoff paperwork generally follows closing by a week or so,you should be Ok.
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Old 10-06-2016, 08:33 AM
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As long as you have s properly recorded lien on the property you are fine.
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Old 10-06-2016, 09:00 AM
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I would think closing attorney would have your proceeds
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Old 10-06-2016, 09:02 AM
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Originally Posted by bjm9818 View Post
As long as you have s properly recorded lien on the property you are fine.
This.
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Old 10-06-2016, 09:23 AM
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Originally Posted by Lobstercatcher229 View Post
I appreciate the vast knowledge of THT folks.

I loaned money for someone to buy a house. That house closed this week. After payment of the loan and other expenses there was some profit. That profit has been given to the homeowner. As the lender my payoff hasn't happened yet.

As the lender we are getting different excuses, reasons, why the money hasn't been wired. Are there some protections if after the latest "reason", closing today for the Hurricane on the Florida East Coast my loan payoff money disappears?

The homeowner sold the house through a realtor, which I have read has some protections.
How did they close on a sale without paying off your first position ? You would have needed to sign a release .....

Something smells IMHO
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Old 10-06-2016, 09:29 AM
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Loan closing and funding are not synonymous, although everyone seems to think they are. Closing is the official signing of the paperwork at the title company. Funding (the actual wire transfers) may not take place until a few days after -- once the bank has reviewed all the signed paperwork and deemed all is in order.

You should be able to contact the bank to verify when/how the wire transfers took or are taking place.
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Old 10-06-2016, 09:34 AM
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Originally Posted by Lobstercatcher229 View Post
Yes
Then you have legal rights that vary by state but off the top of my head I believe it's 3 working days most of the time. You should run this by the closing attorney, again.
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Old 10-06-2016, 09:36 AM
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Originally Posted by Dulcecita Lures View Post
Loan closing and funding are not synonymous, although everyone seems to think they are. Closing is the official signing of the paperwork at the title company. Funding (the actual wire transfers) may not take place until a few days after -- once the bank has reviewed all the signed paperwork and deemed all is in order.

You should be able to contact the bank to verify when/how the wire transfers took or are taking place.
the title company and/or closing agent would have requested verification of the payoff amount from the lender (OP)
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Old 10-06-2016, 09:40 AM
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Originally Posted by Lobstercatcher229 View Post
As the lender we are getting different excuses, reasons, why the money hasn't been wired. Are there some protections if after the latest "reason", closing today for the Hurricane on the Florida East Coast my loan payoff money disappears?
I don't know where you are, but in case you weren't clear on it - essentially everything on the east coast of florida is legitimately closed today and tomorrow, because everyone is too busy frantically trying to button up their homes and offices for the storm.
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Old 10-06-2016, 09:54 AM
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Originally Posted by triplenet View Post
the title company and/or closing agent would have requested verification of the payoff amount from the lender (OP)
That wire transfer should have gone out within a hour of closing. Delaying payment changes the payoff amount due to accruing interest.

I'm guessing the OP lent some people money in a informal manner and was expecting them
To do the right thing and pay him back at closing. I hope I'm wrong but he should have received the funds by now.
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Old 10-06-2016, 09:55 AM
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Originally Posted by triplenet View Post
the title company and/or closing agent would have requested verification of the payoff amount from the lender (OP)
I have always closed with a lawyer and had funds verified and deposited on the day of signing otherwise its a no go for me
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Old 10-06-2016, 10:00 AM
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Originally Posted by Flot View Post
I don't know where you are, but in case you weren't clear on it - essentially everything on the east coast of florida is legitimately closed today and tomorrow, because everyone is too busy frantically trying to button up their homes and offices for the storm.
I am in Central Florida. Since everything is legitimately closed in Fort Lauderdale, where all this closing is taking place I appreciate everyone's advice and guess I need to be patient till Monday when I can check on what happened to the wired money that they said would go out yesterday afternoon.
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