Simultaneous Closings - Title Company "Wills and "Won'ts"

By: david Wednesday May 14, 2014 comments


Contrary to conventional thought, many/most title companies will do double closings. There is really no reason they shouldn't, as it is merely two loan closings back to back vs. time passing between those closings. They follow the same procedures as far as recording the deeds of trust, releases, title insurance, etc. They just do it for two closings. And - they make more money.

The more relevant question these days, is, whether they will do "dry" simultaneous closings vs. "wet" closings. Dry simultaneous closings use the funds provided by the final lender to fund both closings (whereby the funds are moved around "on paper"); vs. Wet closings which require separate funds for both the "A" & "B" closings.

Again, conventional thought is that title companies will no longer do dry closings. This is not true. Believe it or not, many title companies - from my experience - will do them. However, most conventional LENDERS who hold the CURRENT mortgage/deed of trust will not allow dry closings (probably because they are too "out of the box"); therefore they are much more rarely seen, and funding for each closing is required.

If you are doing a double/simultaneous closing, ALWAYS ask the title company if funding for each closing is required or if only a single "set of money" is needed. They should check with the current lender. If only one set of money is needed, you can cut out most or all of the costs of the transactional funding - usually from a hard money lender like me. (No problem – I’ll get you when the transactional funding IS needed!)

Three title companies we’ve done simultaneous closings with recently:

Heritage Title (Wet closing due to lender requirements)

Abstract Title (Dry closing)

Land Title (Dry closing)


About the Author: david