Cash out Re-Fi--When are creditors paid (escrow, credit card, refinancing, fund)

[mspamz]

We used a cash out refi to consolidate debt. We got our portion of cash deposited today. Does anyone know the timeframe in which the other creditors are paid?

Thanks,
Pam

[adjusterjack]

Depends.

If there were any recorded liens, the escrow company should have paid them at the same time.

If you provided written instructions to the escrow company to pay certain amounts to certain creditors that should have been paid at the same time.

If neither of those happened then you pay your debts out of your cash.

I suggest you read your settlement statement to see if any creditors were listed for payment.

If there weren't, then you pay your debts whenever you want to.

[mspamz]

Originally Posted by adjusterjack

Depends.

If there were any recorded liens, the escrow company should have paid them at the same time.

If you provided written instructions to the escrow company to pay certain amounts to certain creditors that should have been paid at the same time.

If neither of those happened then you pay your debts out of your cash.

I suggest you read your settlement statement to see if any creditors were listed for payment.

If there weren't, then you pay your debts whenever you want to.

Thank you! Yes all of our personal credit cards were listed to be paid on our closing statement. I just didn't know if that was a lengthier process than paying us the balance of cash out. This is our first time refinancing and just are unfamiliar with the process. I tried to look up info online about it and wasn't able to find any.

Thanks again for your help.

[NORTY FLATZ]

You took on more secured debt to pay down unsecured debt?

Medical costs?

[adjusterjack]

Originally Posted by mspamz

Thank you! Yes all of our personal credit cards were listed to be paid on our closing statement. I just didn't know if that was a lengthier process than paying us the balance of cash out. This is our first time refinancing and just are unfamiliar with the process. I tried to look up info online about it and wasn't able to find any.

Look at your credit card accounts online. You'll see if a payment has been received and how much.

If the payments aren't shown, call the escrow company and find out if the funds have been dispersed and what date and how they were sent. That should give you an idea of when the payments should reach your credit card accounts.

[SmartMoney]

If you refinanced your primary residence, there is a right of rescission, or right to change your mind. So, say you closed on a Monday, a refi on a primary would fund on the following Friday. This means thos other debts would likely see a check in the mail the following Monday.