Wednesday, May 2, 2012

Certified Check or Wired Funds

Experienced real estate agents are always evaluating the home inspectors, loan officers, escrow officers and other people we encounter who can help us with our business. We have assembled our teams of experienced, conscientious and reliable professionals, and we refer our clients to our team mates so the sales transaction goes as smoothly as possible.

The escrow company handles the paperwork and the money in a real estate sale. If this job isn't done correctly, the repercussions can take years to resolve. I know this from personal experience.

Unfortunately, when we are selling a foreclosure, we usually have to work with the escrow company that the seller chooses, and this company is often in Phoenix or California.

One of my fellow agents recently had an unpleasant experience with an out of town escrow company. The buyer signed settlement documents in Tucson, and provided a certified check for down payment and closing costs. The signed documents and check were Fed Exed to the out of town escrow officer. Upon arrival, the certified check was missing.

Issuing a replacement check can take up to 90 days. The buyer could lose the opportunity to buy the house, just as he was packing the moving truck. You can imagine the heartache.
The solution is to wire the funds to the escrow company. If a wire is misplaced, it can be tracked and resubmitted. 
Incidentally, I got this tip through my company's interoffice communications. Working with a large company where many agents share their learning experiences and advice helps me avoid making mistakes on my own transactions. I am so glad I moved to Tierra Antigua Realty.

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