Funding vs Recording?

[CindyR]

Hi - any financing folks out there with info on how the timing works between funding the loan and recording the Deed of Trust? I though they happened pretty much simultaneously but I can see why they might get the papers signed and recorded before they actually give away the dollars. Anyway, I am working on a Field Review with "Please rush as they are holding up funding" but I find the Lender recorded a Deed of Trust on 12/27/07.

Could they really record that long before they fund? Or is my client confused?

 

[Restrain]

May be secondary funding, not primary funding.

 

[Pamela Crowley (Florida)]

Maybe they are having trouble selling that loan to someone else.

 

[Joyce Potts]

The deed is recorded when the closer decides to send it to the clerk's office for recording. Two different things.

Typically, the debate is about when the true 'meeting of the minds' took place which is the contract date vs. the closing or funding date. For me, that is still the debate. The actual recording of the deed has less meaning than the other two, IMO. First to record, you're asking? That's what a title commitment and title insurance is for, generally speaking.

 

[CindyR]

The deed is recorded when the closer decides to send it to the clerk's office for recording. Two different things.

Typically, the debate is about when the true 'meeting of the minds' took place which is the contract date vs. the closing or funding date. For me, that is still the debate. The actual recording of the deed has less meaning than the other two, IMO. First to record, you're asking? That's what a title commitment and title insurance is for, generally speaking.

The question is about a recorded Deed of Trust which is only about funding. This is a refinance transaction.

 

[Joyce Potts]

Deed of Trust = Mortgage which is the collateral for the loan, guaranteed by the promissory note.

My answer stands in terms of a title commitment and title insurance.

 

[CindyR]

OK - So is the mortgage recorded a month before the loan is funded? Seems way too long ahead of time to me. The lender/client recorded the deed of trust 10 days after the original appraisal was completed in December. Now it is a month later and they are telling me to hurry so they can fund the loan. Is that really how this works or is there something not quite right about this???

Also, for what it may be worth, here in AZ, sale transactions are generally recorded on the same day they close. They are usually at least submitted to the recorder's office on that day although sometimes not processed until the following day.

 

[Pamela Crowley (Florida)]

Just guessing here: The appraisal used to close that mortgage is not acceptable to whoever is left purchasing mortgages.

 

[Joyce Potts]

OK - So is the mortgage recorded a month before the loan is funded? Seems way too long ahead of time to me. The lender/client recorded the deed of trust 10 days after the original appraisal was completed in December. Now it is a month later and they are telling me to hurry so they can fund the loan. Is that really how this works or is there something not quite right about this???

Also, for what it may be worth, here in AZ, sale transactions are generally recorded on the same day they close. They are usually at least submitted to the recorder's office on that day although sometimes not processed until the following day.

How can the mortgage and not be executed, much less recorded before the loan is INITIALLY funded? Something isn't making sense.

 

[Mr Rex]

The question is about a recorded Deed of Trust which is only about funding. This is a refinance transaction.

Likely the original lender is selling the paper. I refi-ed this summer. I made 1 payment to the original funding lender before they sold it off to Chase.