refi...is this a 'dry closing'
I am refinancing in an Eastern state where "Dry closings" are illegal. I was told that tomorrow (2/17) would be the closing date ("settlement date" on HUD-1), and that I would get the HUD-1 last Wednesday. Well, I did not get the HUD-1 until late this morning. I immediately noticed an irregularity. They are charging me over $500 more than Well Fargo loan payoff calculator says I need to pay, even if I set the payoff date to the "Disbursement date", which is 2/23. The closer said in an email that:
"I can use the payoff you have provided, however, please note, we add 7 days of per diem after the date of disbursement to allow time for mailing and processing"
WTF? I show up tomorrow and sign a bunch of paperwork, and they can't even mail the freakin check to Wells Fargo until NEXT monday? THEN I might have to wait 7 days? From Well's point of view, the mortgage is an obligation until it is paid off. She went on to say "any overage will be refunded directly to you from Wells Fargo." Well, Wells Fargo doesn't give a crap about what happens with the title at the courthouse - I owe them interest until the loan is paid off in full. They aren't going to say "you poor baby, you actually had collateralized the house to someone else 2 weeks ago, we will give you a refund for the difference." FURTHERMORE I am prepaying the new interest from 2/23 onwards, as is typical practice. If the title company idiots can't manage to pay off my old loan for almost 2 weeks, I shouldn't have to pay for 1 week of interest to the new loan. It's like they are trying to force more than a week of overlap in the paperwork, but probably actually pocketing the difference.
When I sold a house, I got the wire transfer into my bank account THREE days after closing and that seemed like an eternity. Why will this almost take 2 weeks? Sometimes tells me they are up to something. One thing that worries me is the settlement company is a division or subsidiary of the lender.
NB I have over an 800 credit score and the loan was supposedly underwritten fully almost 2 weeks ago. So getting the money from the lender should not be the issue.