Special offer

Bank Funds - to WRONG Title Company - REALLY??!?! with Christianne Gordon

By
Real Estate Agent with Dickson Realty BS.143506

Many of you know that I am an REO agent. I actually work VERY HARD to make sure that every buyer's agent that works with me gets great service. I personally strive to never let the sun set on an email or a voicemail. I answer my phone 99% of the time. I want buyers agents to know that completing an REO sale with me is not akin to pulling teeth, giving birth, or having a colonoscopy!

One of the banks I represent allows me to use a local title company, which is fantastic! Local title companies are experts on the local market and customs, and it just makes for a smoother closing all the way around. One of my bank owned listings was due to close Friday. The operative word here is WAS.

Rewind to Monday...everything was on track. The loan documents from the bank went out to the title company, and the buyers did the walk-through with their agent. Tuesday, the buyers signed all their loan documents and the title company overnighted the documents back to the bank in anticipation of Friday's funding.Wednesday, the bank verified that all the loan documents were in order and received wiring instructions from the title company for the funding. Thursday was a quiet day just in case there were any last minute conditions or anything - you know how today's financial climate is...Be prepared for lots of weird last minute requests...

Friday morning, I spoke with our escrow agent and we were only waiting on the funding. Noon came and went...I was busy doing other things...I was watching for an email verifying that we were out to record...1pm came...2pm came...I still had no cause to worry, right? (Are you sensing the big REALLY??!?! coming?)

Really??

At 3:10pm, the escrow agent called me to give me the bad news. We weren't closing on Friday. The escrow agent had just gotten off the phone with the bank, and the bank said they sent the funds hours ago...They sent her the confirmation of the wire...It turns on this very senior banking employee of a very large national reputable bank wired the funds to the WRONG Title Company! The bank was mortified, but by then, all wires were completed for the day and there was nothing we could do.

Of course, the buyers were furious, I was bummed out, and one of my bank owned properties didn't close on time. I couldn't believe this happened to ME! REALLY??!?! I try so hard to make sure that there are no hiccups in my bank owned deals...but this was a new one on me!

Hopefully, the bank can reverse the wire Monday and get it back out to the CORRECT title company in time to fund and close tomorrow. Did I mention that the buyer's lock expired on Friday? I wonder how the bank is going to handle that!

I will be watching closely on Monday to see how they handle this mistake and what they do to correct it in the buyer's eyes. And of course, you can count on me to let you know!

 

       Follow me on Twitter          
 

 Posted By: Christianne Gordon - Northern Nevada Real Estate Agent - Realtor with RE/MAX Realty Affiliates, specializing in Carson Valley Real Estate and Northern Nevada Real Estate.

Posted by

_____________________________________________________________________________________________________________

Christianne O'Malley, REALTOR®, e-PRO, CDPE, SFR,

RE/MAX Realty Affiliates - Great Nevada Homes, Inc.

Direct: (775) 881-8223

Visit us online at GreatNevadaHomes.com 

The information in Christianne Gordon's blog is deemed accurate but not guaranteed. Any individual considering a short sale should also seek independent tax and legal advice to get specific information as it relates to their personal situation. Christianne O'Malley is a licensed real estate agent with RE/MAX Realty Affiliates serving the entire Northern Nevada region including Reno, Sparks, Carson City, Washoe Valley, North Valleys, Fernley, Dayton, Stagecoach, Minden, Genoa, Gardnerville, Smith Valley and Yerington.

 

Anonymous
Anonymous

Christianne - Sorry to hear about your bad Friday!  I have seen this every once in a blue moon...  I always wonder in the back of my mind when there is a delay in funding if the lender was waiting for funds to free up from another line or source and they "conveniently" have a little mishap to delay funding.  Maybe one too many Oliver Stone movies for me...

Jun 07, 2009 03:28 PM
#1
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Oopsie . . . I hope the buyers will get their escrow fees refunded on that one, by the bank! 

As I live and breath in this 'biz there is ALWAYS something new, isn't there?  This is one of those "Well, that's never happened before" stories!

 

 

Jun 07, 2009 03:39 PM
June Piper-Brandon
Coldwell Banker Realty - Columbia, MD
Creating Generational Wealth Through Homeownership

Oh wow, that is a new one to me, I have never seen a bank wire the funds to the wrong title company before - but I guess there is a first time for everything.  But, those poor buyers....

Jun 07, 2009 03:49 PM
Dee Mayers
Covina, CA
San Gabriel Valley, CA

Christianne,

What a story.  Let's hope that the mistake is corrected promptly, and the buyers are compensated for this hiccup.  In the back of my mind though, I can help but think what a good attitude to have.  To be a hard worker, to stay on top of things, and to provide great service.  Commendable indeed!

Jun 07, 2009 04:00 PM
Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Christianne, I think this happened to me, too.  After some calls back and forth with a very rude loan officer in the lender's office - wondering why the money wasn't in escrow...  she suddenly became so cordial, said there was a glitch and the money would be rewired the next day.  I thought something was up!

Love your Really ??!?! posts!

Jun 07, 2009 04:09 PM
Bill Risser
Fidelity National Title - Saint Petersburg, FL
Fidelity National Title - Tampa District

Christianne - Sorry about the lack of contact info in the first comment... Found your link on Twitter and forgot to login before commenting...  Good Luck tomorrow!!

Jun 07, 2009 04:49 PM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

No worries Bill :-) I'll let you all know tomorrow if we ACTUALLY close :-)

Jun 07, 2009 05:09 PM
Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

Christianne,  Unbelievable.  How to you plan for this ... you don't.  It'll close today and you'll have a great start to a great week!

Jun 08, 2009 01:47 AM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

Hi everyone - Well, good news - we're on record. The wire was reversed and sent right back out this morning. Whew! Made for a Happy Monday though!

Jun 08, 2009 06:49 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Christianne, I've seen this happen before... and lots of other weird stuff.  That's why we have to stay on top of our transactions, isn't it... great job getting their problem fixed!

Jun 08, 2009 11:32 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

All's well . . . as they say!!

Jun 08, 2009 01:24 PM