Last week, we scheduled our 50th closing for this year (yay!). Typically we send an email a week before closing with the time, day, address, map, and list of things to do/bring for closing. Among the things listed is whether or not the client will need to bring funds to closing and how to do it. In Indiana, if the amount our client needs to bring to closing is $10,000+, it needs to be wired directly from his/her bank to the title company (with around a 4hr window to closing).
Well, THIS client was confused by a few things. She is selling a cute bungalow on Indy's south side and buying a larger home in the same township. Her confusion came from the fact that the title company would not "automatically" apply the proceeds from the sale of her home to the purchase of her new one. Because of the job she works, email and text messaging are the best ways to communicate with her during the day. 5 emails after the original, and she understood what was expected. :)
Here's what I finally ended up saying:
- Technically, you do not have to apply the funds from the sale of your home to the purchase of your new one. Therefore, the title company is not allowed to assume this. NO reference of your old home will appear on the HUD Statement for your new one.
- The HUD Statement for the home you are buying will have a total at the bottom stating the amount expected from YOU at closing. If this amount is over $10,000, you will have to wire money. NO MATTER how much you may receive from the sale of your other home.
- HUD Statement says you owe $11,000
- You receive $5,000 from the sale of your home. AND you request the title company apply it to the purchase of your new home.
- You still MUST WIRE the remaining $6,000. (Because the HUD total is above $10,000.)
After the example, she got it. But this can be confusing for anyone! The final say is whatever the HUD Statement says on that bottom line.
Now that her expectations are on the same page as ours... off to closing!
Unless otherwise noted, blogs are authored by Tonda or Steve Hoagland