Wet Loan
"Splish splash, I was getting a mortgage, all about a Saturday night..."
A wet loan is a mortgage that helps the borrower buy some property quickly, allowing the buyer to complete all that paperwork and other processes after the deed of buying is done.
Since all that paperwork is there for a reason (you want to make sure you know what you’re getting into with the probably-most-expensive-purchase of your life), some states don’t allow wet loans at all.
If you do get a wet loan, you get your hands on the money as soon as you finish the loan application. The things that make sure you don’t get screwed over, like a property survey and title search, are done after the property is already bought.
Why is it called a wet loan, anyway? Well, it all happens so fast, the ink is still wet when the paperwork is submitted to the lawyers.
Splish, splash...
Related or Semi-related Video
Finance: What is a second mortgage?4 Views
Finance allah shmoop What is a second mortgage Okay you
know what a first mortgages it's otherwise cleverly named what
is called it is called oh yeah Mortgage it's Just
a loan on a house You paid four hundred grand
for this baby Hundred grand down two hundred fifty grand
in a first mortgage And they're still fifty grand You
owe well where's that fifty large coming from the bank
wouldn't loan you any more on a first mortgage that
was costing you six percent a year Tio you know
to rent that money So you had to get a
second mortgage which should things go awry and you become
a statistic Well that's it's fully behind the first mortgage
in the priority stack of payback So in a bankruptcy
situation the first mortgage first what's called a first mortgage
get it fully paid along with any fees associated with
it and back interest accrued and any other things that
are associated with that first mortgage it stands in line
first in priority Then any cash leftover gets attributed to
that second mortgage So not surprisingly second mortgage money costs
a lot more to rent then first mortgage money because
the risk of non payment in a bad situation is
meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living
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