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Contingent Closing - How It Works

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Regular Contributor

Contingent Closing - How It Works

Wife and I are closing on our new home on 9/25 at 1pm.  We are closing on the sale of our home at 10am that morning with a different lawyerw. The buyer of our home is also contingent for the same day and is closing at 11am.  The people buying their home is new money so no contingency on them.

 

So, all the above being said, does my sale proceeds minus outstanding loan need to be wired to me prior to me closing that morning. For some reason this is all confusing me and I know I need to wire prior to my closing at 1pm.

 

Thanks

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6 REPLIES 6
Established Contributor

Re: Contingent Closing - How It Works

Congratulations!

 

Contingent sales can be a cluster, but be sure that everyone is communicating and it may not be a bad idea to be a little bit skeptical and suspicious throughout the time period.

 

Pay attention to all of your due diligence dates in order to be certain that no one is backing out---especially if one's purchase is contingent upon the sale of one's current primary because all it takes is for one surprise "fall out" to de-rail the entire chain of transactions. 

 

Be sure your attorneys have the proper instructions, but Buyer 1 must close with Seller 1 first, in order for Seller 1 to become Buyer 2, he's going to need to be certain Buyer 1's money is clear (paid off your loan) and Attorney 1 wires proceeds to Attorney 2 so seller 2 can become Buyer 3 which requires Attorney 2 to payoff your lien and send your proceeds to Attorney 3 so that he can participate in all the fun.

 

Be sure to keep us all posted, but I'd be cautious and conscientious.....

 

A chain is only as strong as it's weakest link.   You may not likely be able to know who the weakest link is in this deal yet, but when you do, pray that there is a good team nearby to help support and fix it if possible.

 

   

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 2 of 7
Community Leader
Senior Contributor

Re: Contingent Closing - How It Works


@jd403 wrote:

Wife and I are closing on our new home on 9/25 at 1pm.  We are closing on the sale of our home at 10am that morning with a different lawyerw. The buyer of our home is also contingent for the same day and is closing at 11am.  The people buying their home is new money so no contingency on them.

 

So, all the above being said, does my sale proceeds minus outstanding loan need to be wired to me prior to me closing that morning. For some reason this is all confusing me and I know I need to wire prior to my closing at 1pm.

 

Thanks


I don't think any funds will be wired directly to you at closing. At least, that's not how it's done in VA. Funds are not released to parties until the deeds are recorded at the courthouse, which in your specific situtaion, may not be until the following morning. So, 9 times out of 10, all funds will be wired to the respective closing/settlement attorneys and then after everything is signed, sealed and delivered, monies will be paid out to all the respective parties.

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Message 3 of 7
Valued Contributor

Re: Contingent Closing - How It Works

All these closing agents need to be aware of each other and speaking with each other. They are the ones in the long run that will make the chain of closings work. The poster above is absolutely correct about the weakest link.
Message 4 of 7
Regular Contributor

Re: Contingent Closing - How It Works

I appreciate the structure you just laid out. Due Diligence period for all parties has ended and appraisals and inspections done also.  Looks like now it's about getting through that day. Hopefully in one piece

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Discover IT $10.5k, Citi AA $6.8k , Cap One QS - $3.3k, Amex Optima - $4k Kohl's - $2500, M-Life MasterCard $5k, Amex Delta Gold $5k, Citi Best Buy $2k
Message 5 of 7
Regular Contributor

Re: Contingent Closing - How It Works

My lawyer is saying that the county we live in here in NC is all electronic now so it should all be same day. I honestly was on the same page with you before knowing the electronic recording of deed.

FICO 8: TU 716 EX, 718 EQ 721 (5/3/19)

Discover IT $10.5k, Citi AA $6.8k , Cap One QS - $3.3k, Amex Optima - $4k Kohl's - $2500, M-Life MasterCard $5k, Amex Delta Gold $5k, Citi Best Buy $2k
Message 6 of 7
Established Contributor

Re: Contingent Closing - How It Works

just make sure no one's loan is disrupted by the storm....(if you are down in eastern NC where bbq tastes funny...)

__________________________________________________

Licensed NC Mortgage Loan Originator
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