What is a "Dry Closing" ? asked the Agent

Real Estate Agent with Keller Williams 414-525-0563 57026-90 Broker

  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 Martinithis 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 iNo Keysn 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.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Debbie Reynolds 08/21/2017 05:00 AM
  2. Dale Taylor 08/21/2017 10:16 PM
  3. Gabe Sanders 08/27/2017 11:30 PM
Lending / Financial
real estate dry closing
dry closing in real estate

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Shahar Hillel
Augusta Financial Inc. - Stevenson Ranch, CA
Mortgage Consultant, Loan Officer.

Sally and David.

Great clarification of what a dry closing is.

Thank you.

Aug 21, 2017 11:22 AM #40
Karen Feltman
Cedar Rapids/Iowa City, IA Lepic-Kroeger REALTORS - Cedar Rapids, IA
Relocation Specialist

We don't have "dry" closings here.  No money, no keys, no closing.  Great reminder though that not all lenders are created equal.

Aug 21, 2017 01:30 PM #41
Pat Braithwaite
Braithwaite Realty - Marietta, GA

Thank goodness and my great Lenders that I was not aware of the term dry closing. It took a lot of preparation to be ready but they have a great handle on it. 

Aug 21, 2017 02:38 PM #42
Jerry Murphy, CRS, SRES
Long Realty West Valley - Anthem, AZ
Anthem, Phoenix, and Scottsdale AZ Real Estate

Thanks for defining "Dry Closing" Sally and David I didn't know about this either.  Best wishes to you.

Aug 21, 2017 03:44 PM #43
Rob D. Shepherd
Windermere/lane county - Florence, OR
Principal Broker ABR, GRI

Just waiting for a chance to use the new word. "Thinventory".

Aug 21, 2017 05:12 PM #44
Gregory Manns
HomeSmart Professionals - Palm Springs / La Quinta, CA - Indio, CA
Palm Springs Area Realtor HomeSmart Professionals

What a timely post and a geat reminder to stay in close contact with lenders and confirm the distribution of the closing documents in a timely manner. Thank you Sally and David!

Aug 21, 2017 06:51 PM #45
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I've unfortunately had a few of these.  Not a pleasant experience for the buyers and sellers.

Aug 21, 2017 07:14 PM #46
Dale Taylor
Re/Max 10 New Lenox Illinois - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

I'd prefer to not play the blame game because I've experience other reasons like the wired transfer of funds is slow in transmission.  I can even remember a Buyer honestly confirming they had been layed-off from their job at the closing table when asked by the Closing Officer their current employment status.  Fortunately, the transaction fully closed a week later because it was a very temporary situation for the Buyer.

Aug 21, 2017 08:45 PM #47
Stavrula "Sam" Crafa, RNC,GRI, CDPE, PSA
Future Home Realty - Seminole, FL
Providing the integrity and service you deserve.

I can't say Ive experienced that before until my last closing. There was no lender as it was a cash sale. It was actually my sellers fault. She lives in a very rural part of Tenn and couldn't get the signed papers back ti Florida in time. 

Aug 21, 2017 09:38 PM #48
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

Every time there's a new regulation there is a new problem.

Aug 21, 2017 10:03 PM #49
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Very interesting. I wasn't aware of the term.

Aug 22, 2017 04:06 AM #50
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

The issues that come from a "dry closing" can become a night mare.

I am a hands on person and keep in contact with all parties to make sure we are keeping on schedule. This works most of the time, BUT, I can not make someone do something.

Thanks Sally for a great explanation of the problem.

Aug 22, 2017 06:36 AM #51
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

I just went through a dry closing and the lender failed to inform everyone until 2 days before closing. My seller was red hot.

Aug 22, 2017 07:26 AM #52
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Sally & David,

In some states, dry closings are common, but not where I am now. It happens occasionally. Usually, when eveyone signs after 2 on a Friday before a holiday weekend. Bummer, because that would be a great time to move & get a few things done.

Aug 22, 2017 10:12 AM #54
Andrew Mooers | 207.532.6573
Northern Maine Real Estate-Aroostook County Broker

No lubrication ... good explanation of situations we run into... two part, through the mails and over the fiber closings. They all add up in the list, twist, sell (repeat) Sally K. & David L. Hanson !

Aug 22, 2017 11:24 AM #55
Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Rockledge, FL
... a small office, delivering big service!

Never heard the term dry clsing but I had one last week where the money came the next day after the signing!

Aug 22, 2017 11:52 AM #56
Janice Hope Zaltman Realtor,LEED AP
United Realty Group - Fort Lauderdale, FL

Thank you for this post and after some closings..the martini would be welcome. Have had dry closings due to sellers and buyers being located outside the country. It does close. Lenders don't seem to ever have all their ducks in a row. They need to hire more staff. 

Aug 22, 2017 07:53 PM #57
Kathryn Messina
Real Estate 360 Now - Lynnfield, MA
Real estate agent in the greater New England area

Never heard of a "Dry closing" but now I do! It is all about the checks and balances!

Aug 23, 2017 06:50 AM #58
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Your title caught my eye and the content did not disappoint!  Ugh the dreaded domino effect! 

Aug 26, 2017 09:52 AM #59
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Sally K. & David L. Hanson 

I think we've all had this happen from time to time thus causing the need for a dry martini

Aug 28, 2017 02:49 AM #60
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