Saturday, March 20, 2010

query: what do you mean mortgage post closing

The word "post" means after.  So any reference to post closing means after closing.

We have a post closing department which handles all of the details and work that takes place AFTER the closing.  For a title insurance agent, that means recording documents, issuing policies, delivery of documents, filing, scanning, escrows and sending out checks, etc.

Mortgage lenders also have post closing departments which process the mortgages for sale in the secondary market and/or for loan servicing.

If you are a consumer and someone asks you to do something, perhaps send a document and they say, "You can send it post closing."  they just mean it's okay to send it to them later, after closing.

2 comments:

intrigued said...

Bank of America uses post-closing companies *before* closing to work with a deed in lieu vendor to clear a title on their reo of liens *beore* recording the deed and closing. Heard of that?

Diane Cipa said...

I guess they are using companies that usually do post closing work and so the name is being used loosely.

It is extremely important that any lender selling property obtained by deed in lieu of foreclosure, carefully clear title before selling the property to a consumer.

Frankly, I think they should carefully review the title before they accept the deed in lieu. Sometimes the liens that could be divested in foreclosure are higher than the cost of the foreclosure action.

In any case, consumers must always be careful to obtain title insurance even when paying cash for REO property, just in case the seller missed a lien.