"DRY-CLOSE" SAY "YUCK-YUCK TWICE" is a phrase I barrow from
In a recent transaction with a long-time valued Client whose Attorney had planned the closing on the sale of their home and the purchase of their new home on the same day, I had to prepare them for the possibility of a "Dry-Close!"
Knowing any possibility of both their closings not going relatively smoothly would send them into the "Solar-Eclipse" of stress zones, I had to first start by telling them I would be present at the closing. I shared as long as I stay cool, you stay cool.
I explained how if money wire transfer transmissions were slow, they could be sitting at the closing table on the sale of their home all the way to the time to head to their next closing, not knowing if their old home fully closed. You can imagine how upsetting this could be for them, having scheduled Movers and all the other vital activities that go along with relocating.
I told them to still plan on heading to their next closing with a positive belief everything would fall into place for their next closing. If by chance the money wire transfers did not get there in time, the Closing Officer would ultimately make the decision for them to return home after all forms were signed, and they would get a confirmation of a fully closed transaction probably the next morning.
"Fear and worry" can take Buyers and Sellers on a "totally Stressed-out Journey" they really don't need to travel when they are prepared in advance this is a normal thing that can happen in a transaction.
From the very start of our business teamwork, I tell my valued Clients realistically I can never fully prepare them for the journey. I remind them I will be there every step of the way, hopefully preparing them enough for the next step.
Real Estate is a very emotional experience with lots of surprises along the way. My goal is to make it as fun and rewarding as possible for my valued Clients. I encourage them to share with me their thoughts, worries, ideas, and most importantly their next move. When we're fully transparent in our communications, I can best serve them, relieving as much stress as possible.
Please allow me to be honest. There will be some stress. As a harmonious team, we can handle it well!
My respected Colleague below shares their valuable experience with "Dry-Closings" below. Although, I'd prefer not to play the blame game, they do make a very good point in it is so important for a transaction to be very well organized with sufficient checks and balances to keep these types of closings a minimum.
REFERRALS ARE SO APPRECIATED! THANKS
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.