Hi - I have my first signing today and my documents came with no instructions. I printed and tabbled everything and have a copy for the seller. In looking through the documents I came across a proceeds request form that says a voided check must be attached and it has a form attached that says Attention Closer/Notary and it talks about the responsibility to examine the bank account name entered on the proceeds form. Again, I do not have any instructions from the settlement company so should I be collecting a check or verifying this bank information? I really don’t think so but would like to be sure!
Look at the closing disclosure. If funds are due from the borrower then you will need to collect the amount shown. Look closely at that document that explains who the check should be made payable to and the method of payment.
Example: some will accept personal checks up to a certain amount. Others will state a cashiers check is required if it’s above a certain amount.
They are Sellers - they are getting proceeds back at funding - you have borrowers fill out the form and attach a voided check so the funds can be wired to them (sometimes companies also accept a deposit ticket as long as it contains all the pertinent bank info). The check is not filled out or signed, just have Sellers write “VOID” in big letters across the check (and I used to have them scribble through the signature line.
That form and the voided check get sent back with the package for funding purposes.
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