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what is wet settlement act?
According to this law, settlement agents are required to disburse the funds on or before the closing date.
At the time of settlement sellers want their money as early as possible after signing the deed. Most expect to receive a check at the settlement table.
This law was enacted for preventing delays by lenders in sending the funds to the settlement attorney. Previously what use to happen is that settlement attorney used to hold the closing & then send closing documents to lender for approval. After the documents were reviewed & approved, lender normally used to send a check to settlement attorney. This process used to take 1 or 2 days but in some instances it can also happen that it takes almost 2 weeks.
Wet Settlement Law forces lenders to provide the funds at or before closing in the form of wired funds, cash or certified check at the time of settlement. In return lenders require that the settlement attorney does not disburse the funds until mortgage lien is recorded in the land records.
Sellers are benefited because of this law as now they are assured that they will receive the funds within two days after the settlement.
Nowadays most of the lenders wire money to the settlement office which helps settlement attorneys to disburse the funds on the day of settlement or the next day. This law has helped in the overall settlement process.
This law varies from state to state. Like in Virginia, the settlement agent is required to distribute funds within 2 business days after the funds are deposited in their trust account. While in District of Columbia, the funds are required to be disbursed within 1 business day. And in Maryland lenders are required to provide the funds on or before the day closing occurs to settlement company.
Welcome to the forums.
The term Wet Settlement means that when a person attends the closing in a mortgage loan transaction, the lender or closing agent should be ready to provide him with the funds.
Many states such as Maryland, Virginia etc have enacted laws on Wet Settlement. For example, in Maryland, the Wet Settlement Act requires that the lender must provide the funds at the day of closing itself.
Are the States of Washington and Idaho Wet Funding States
As far as I know, States of Washington and Idaho are not Wet Funding States.
Does this law apply to a construction loan for a roof replacement where the out of state lender is requiring that a Morgage/Deed of Trust be in hand before distribution of funds can take place?
Yes you will be getting the facility of wet settlement laws in case of construction loan in Maryland.
Is Wyoming a Wet settlement state?
I don't think Wyoming is a wet settlement state.
Does Tennessee law require table funding
Your query has been replied to in the given page:http://www.mortgagefit.com/tennessee/closingloan-tablefund.html
Take a look at it. Hope it helps you.