Home Buying in Santa Fe>Question Details

Katieamurphy, Home Buyer in Santa Fe, NM

I'm sorry I meant Seller. Gets money at closing?

Asked by Katieamurphy, Santa Fe, NM Thu Jul 18, 2013

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Katie, If your question is, literally, "...will I walk out of closing with a check?...", then the answer is, in almost every case, "no". Checks are dispersed at 'funding', not 'closing'. Depending on whether the buyer is getting a loan or it's a cash deal, it might fund later that day and a check will be written to the seller. If there's a loan involved, it might be several days while the mortgage company reviews all the documents before they release the funds. The term is "table funding" where the seller walks away from closing with a check. That almost never happens anymore.
0 votes Thank Flag Link Thu Jul 18, 2013
Ideally you will get a HUD-1 statement from the title company three days prior to closing. That form will have all the figures on it and there is a line that will indicate the amount of proceeds from the sale (if any) that will go to the seller. Thus, you should know in advance how much you would get as the seller, and you can instruct the title company as to how you would like that distributed to you (usually check or wire transfer).
0 votes Thank Flag Link Thu Jul 18, 2013
As the others have said, if the numbers work that way, then YES. Where else would the money go? If you have enough equity in the home, after you pay the closing costs, and pay off your mortgage (if you have one), then Seller gets the "net proceeds". This can be a check, or if it's a significant amount of money you can get it wired to your bank account.
0 votes Thank Flag Link Thu Jul 18, 2013
There would have to be money left over; Selling Price - Expenses - Payoff = Money.
And, YES! you should get a CHECK at the Escrow Closing.
In fact, you may get another check, a week or two later; The Escrow Companies often will have a small residual: They cannot ever not have enough money to Close, so they will pad the accounts by a few hundred dollars.
You know, the Title company works for you; the Escrow Officer is yours for the asking, for questions and problems.
0 votes Thank Flag Link Thu Jul 18, 2013
Hello Katie,

It depends if the seller has equity in their home. If there is enough equity after closing costs and related expenses, the seller could receive a check upon funding, which occurs the day of or day after closing.

If the home is being sold as a short sale, it's possible to receive a check if the seller qualified for HAFA.

Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
Web Reference: http://www.Syan.com
0 votes Thank Flag Link Thu Jul 18, 2013
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