If I decide to sell my house to an investor, money, of course, is the necessary
component of the transaction. There are a lot of dollars at stake, so the
process of transferring funds from one party to another must be completed
thoroughly and accurately.
Settlement Statement – HUD-1
In order to accomplish this, the title company will create a settlement
statement (aka HUD-1) with a list of ALL charges and credits pertaining to the
transaction. The title company serves as a neutral party who obtains the
funds from the buyer – secures the funds – then releases the owed amounts
to the seller and any other lien holder (such as a mortgage company) at
closing time.
Two Options to Receive Funds
As a seller, you have two options in which to receive your funds:
- Provide your bank information to the title company and they will wire the
funds directly from their account into yours. This is often the quickest
way to receive your funds. - Request a certified fund check made payable to you from the title
company. Depending on which bank is used, there can be a hold time
on the check, which could delay when you are able to use those funds.
Another thing to be aware of is the time of day the closing occurs.
If the closing time is late in the afternoon, funding could be delayed until the
following day as all documents must be signed and completed before the
funds are released. We always strive to accommodate everyone’s schedule so
that this can be avoided, but from time to time it will happen. Unfortunately,
no funds are dispersed until closing time. This is a protective measure as our
company must obtain and prove clear title before closing. The general time
frame from the time the contract is signed until closing is about 30 days.
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