I have read a few different resources regarding the VA [Virginia] Wet Settlement Act. It appears that settlement may occur one day (everyone involved has signed, title company/lawyers have received good funds from the lender, buyers get the keys, etc.) but it may take an additional two business days for the seller to receive their proceeds.
Why?
Virginia is not a three day change your mind about buying the house after you have closed state.
My "folks" sold their house a few years back. The title company told them they would give them a little cash (like 5k to help them with their road trip since they were moving to another state immediately after closing) at closing, but due to regulations or some hiccup (whatever) that they would have to wire the rest of the funds to their bank account.
They never received the rest of the seller's proceeds. Ever. They said they were shorted something close to 400k or 500k after all fees were paid.
They did get an attorney. Attorney said that the title company had been building a reputation for doing that to clients over the previous few years and that they basically had to write off the money. In the end, they received maybe a total of 35k for the sale of their 975k home. Their mortgage was something like 300k on the home.
I don't know all the details on what happened since they only grumbled that they couldn't pay me back and had to continue to borrow money from me.
Now I am scared spitless over this "VA Wet Settlement Act" that may mean my seller's proceeds may be delayed by two business days.
Information?
Advice?
Thank you in advance.
