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Cash Is Not The Way To Go

By
Real Estate Broker/Owner with HomeRome Realty 410-530-2400 311291

 

The first time I saw a suitcase full of cash at a settlement table was like something out of a movie. The buyer strutted in, plopped it down, and opened it up like they were unveiling a priceless artifact. And poof! Just like that, the cash vanished quicker than you can say "abracadabra." After a couple of hours, the settlement went off without a hitch. Keys were exchanged, papers were signed, and the house was sold.

 

Fast forward a few years, and I get a call from the IRS and the FBI. I was about to tell them I was too busy for a meeting, but my husband gave me a reality check with a resounding "Not The Right Answer!" So, we ended up meeting the IRS and the FBI, and I had my husband by my side to keep me in check.

 

I spread out all my hand-written records, copies of the contract, and every piece of paperwork I had on the transaction involving the mysterious suitcase full of money.  They asked very specific questions and together gave them the information ..The agents combed through everything, taking notes and appreciating my paperwork. They thanked me and vanished like the cash in that suitcase.

Now, here's the punchline - the buyer of the house with the cash ended up moving to a new place known as...THE BIG HOUSE!

Posted by

Margaret Rome
HomeRome Realty
Broker/Owner/Realtor®

Baltimore, Maryland


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Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

Good morning Margaret. Early in my career as a loan officer in a Savings & Loan, an older lady applied for and was approved for a small loan. The closing was without any issues. About a week after the closing she came into the building, went to a teller and withdrew the entire loan amount from her savings account and then proceeded to the second floor and dumped the cash on my desk. When I asked why, she said "paying the costs of a loan was cheaper than hiring an attorney". Those were the days.

Sep 06, 2024 05:57 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Some how I knew from day one in this business that cash is never accepted.  As in never.  But....wow.....your story is a whopper!  A suitcase full of cash.  I'd be thinking drug dealer or something like that....

Sep 06, 2024 11:20 AM
Margaret Rome Baltimore 410-530-2400

Anna "Banana" Kruchten 

I am certainly glad that I knew nothing about the suitcase or the money. 

Sep 10, 2024 04:55 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Margaret- that was one heck of a story!!!  It's a good thing you had excellent records!!!!

Sep 06, 2024 01:58 PM
Margaret Rome Baltimore 410-530-2400

Kathy Streib,

It was easy to provide them with the details.

Sep 10, 2024 04:57 PM
Lew Corcoran
Better Living Real Estate, LLC - East Bridgewater, MA
Expert guidance. Exceptional results.

Thank you, Margaret, for sharing such a captivating story! Your experience with the suitcase full of cash and the unexpected IRS and FBI meeting is both entertaining and insightful, reminding us of the importance of keeping thorough records in real estate. I truly appreciate your valuable takeaways and the engaging way you presented them!

Sep 06, 2024 02:07 PM
Margaret Rome Baltimore 410-530-2400

Lew Corcoran These upsetting situations do make for good stories.

Sep 10, 2024 04:59 PM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Margaret, cash is a big no, no in the mortgage end of the business.  Cash can't be traced, so if we cannot document where it came from.  If we can't document it, we can't accept it.  The Banking Commission would have a field day with us if we did.

Sep 06, 2024 04:15 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Miss Margaret Rome Baltimore 410-530-2400 were you granted the right to visit the Big House?  

Cash is the way to go ... to the big house. 

In my 21+ years in the business, I've not known a title company that would accept cash. 

 

Sep 06, 2024 04:44 PM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I have heard the suitcase full of cash stories over the years. I have never had such a transaction. Of course, the escrow companies we work with would not accept cash...cashier's check or wire, sure, ...but not in a suitcase.

Sep 07, 2024 10:19 AM
Margaret Rome Baltimore 410-530-2400

John Juarez: My leading title company will only accept a wire. No personal, no certified bank checks

Sep 07, 2024 04:01 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I have had buyers who brought cash to escrow.  But, never for the entire amount of the sale.  Usually, just sizable down payments.

Sep 07, 2024 11:59 AM
Margaret Rome Baltimore 410-530-2400

Hey Myrl Jeffcoat

And there was a time when "Cash used to be king

Sep 07, 2024 04:03 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Margaret, on having this blog FEATURED in the Old Farts Clubgroup!  

Sep 07, 2024 12:01 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Thanks for the feature in OFC. 

Sep 07, 2024 04:03 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Sep 07, 2024 06:53 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

 

Kathy Streib 

Thank you for the consistent weekly featured posts, and I'm grateful to be included!

Sep 07, 2024 08:06 PM
Roy Kelley
Retired - Gaithersburg, MD

Thanks, Margaret, for sharing this story. I have never had a situation like this.

Happy Birthday!

Sep 08, 2024 06:19 AM
Margaret Rome Baltimore 410-530-2400

Thanks Roy Kelley. I bet you have plenty stories to share with us.

 

Sep 10, 2024 04:30 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Margaret,

How did I miss this post! So glad that Kathy Streib featured it in her Sunday series. I didn't see the ending coming! We are not allowed to have buyers bring actual cash  to a closing. The title companies are not banks and will not accept the cash in a suitcase!

Sep 08, 2024 06:33 AM
Margaret Rome Baltimore 410-530-2400

Dorie Dillard Austin TX

I'm so glad that Kathy featured this post!

Sep 11, 2024 07:44 AM
Jeffrey Richman
Immediate Home Solutions - Myrtle Beach, SC
Creative Real Estate Specialist

Hi Margaret,

This is more proof that Cash is not always king!

Sep 08, 2024 07:30 AM
Margaret Rome Baltimore 410-530-2400

Jeffrey Richman 

And saying 'Show Me the Money' may not be perfect!

Sep 11, 2024 07:57 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
The best agent in Southern Utah!

Wow, what a story! Cash is not allowed to be brought to closing here, Margaret, for obvious reasons. The buyer must go to the bank and get a cashiers check well before the settlement date .

Sep 08, 2024 12:48 PM
Margaret Rome Baltimore 410-530-2400

Wanda Kubat-Nerdin - Wanda Can!  That is the way it works. My title companies here don't even want bank checks; they want the money wired.

Sep 11, 2024 07:47 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

What a fabulous story, there is nothing stranger than truth. Oh well, at least you stayed in your house and di not have to go to the Big House too!

Sep 09, 2024 11:52 AM
Margaret Rome Baltimore 410-530-2400

Nick Vandekar, 610-203-4543

It was a memorable story from my early days in RE, but one I won't forget! 

Sep 11, 2024 07:48 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Margaret:

That's quite a story. It's not an experience I have had but it certainly had an intriguing, and perhaps not unexpected, punchline.

Jeff

Sep 10, 2024 03:32 PM
Margaret Rome Baltimore 410-530-2400

Jeff Dowler, CRS, I know we would all avoid that suitcase today, but you can't make this up. Real estate is always interesting.

Sep 11, 2024 07:53 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Wow!  What a story.   I guess that's why title companies don't allow you to pay with cash come settlement time! 

Sep 11, 2024 10:18 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Jan Green - Scottsdale, AZ 

And our title companies only want wires.

Sep 12, 2024 09:54 AM
Jan Green - Scottsdale, AZ

Our title companies accepts Cashier's Checks in Arizona

Sep 12, 2024 10:00 AM