Unlike a dry martini or something that someone might prefer....a "dry closing" is not anything that a Buyer, Seller or agents prefer. As much as some people would like to blame this situation on the "new and improved 3 day rule" (I am still at the THREE days 'really Stage ) it has been a situation that has been around forever. Someone dropped the ball...the "Someone" is likely to be the lender....apparently there are "exceptions" when for some reason the borrowers did not receive the CD (Closing Document) perhaps due to technical difficulties etc.....but the Lender is usually the "Culprit."
It means that....because all the steps that were required were not followed in a timely manner...the latest and not greatest being ..."the loan processor 'forgot' to order the CD" . ....the loan will not fund in a timely manner...the "physical act" of closing that is the Pen to paper continues...but no keys or money exchange hands.
In times of "Thinventory" this can mean a real disaster with closings stacked up like cord wood.....If one transaction doesn't close which was dependent on funds to close the next etc., etc., etc......the dominos fall and no one is able to close until the transaction funds that was dry.
Lenders EVERYWHERE we encourage you to have checks and balances in place for double, triple, quadruple checking the process to be sure that the closing is done in a timely manner.
This is a professional service message brought to you courtesy of Sally K. & David L. Hanson honored to be of service for all things real estate in southeastern Wisconsin.