Posted by PJM/MI on 12/3/09 6:38am
Msg #312905

Sending CASH from the closing

I had a closing last night where the borrower truly brought CASH to the table, and it was not a small amount.
Of course we all have our own way of doing things, and this is what I do:
Have the bo count out the $ in front of me. I put it in an envelope and have then sign the sealed part of the envelope & I sign it also. (Signatures going across the seal vertically). Then I tape over the signatures. (And not with duct tape

Reply by BrendaTx on 12/3/09 6:45am
Msg #312906

Wow. I would hate to encounter that.

Reply by Ilene C. Seidel on 12/3/09 6:49am
Msg #312907

That's very risky what if overnight service looses the envelope. I've had two lost in the last 9 yrs and never found and both had checks in them. You should have given the borrower an envelope with express transmittal so he can mail it the next day. And what if someone in the title office takes the $$ and says you never put it in? I'm sorry for saying this that's the most foolish thing I've ever heard.

Reply by Linda_H/FL on 12/3/09 6:56am
Msg #312909

I agree here with Ilene..

I'd have called title from the table and got overnight or wiring authorization and had the borrowers take care of the funds the next day via cashier's check or wire. Too risky putting cash in an overnight envelope.

Reply by DebbieT on 12/3/09 7:09am
Msg #312911

Re: I agree here with Ilene..

When I worked the auctions we were not allowed to touch the cash if it was brought to the table. We had to have 2 people from title come over to the table to count and collect the money. I would not have taken it. Big risk.

Reply by DebbieT on 12/3/09 7:10am
Msg #312912

I totally agree with Ilene n/m

Reply by Yowheelz on 12/3/09 7:11am
Msg #312913

Cash is not to be sent UPS or FedEx

No guarantees, no insurance. Read the FedEx and UPS regulations.

Reply by RobinS/MI on 12/3/09 7:37am
Msg #312914

I would of taking the cash to a bank and gotten a cashier check, unless it was under 1000. then I would of wrote a personal check and placed the money in my business account.

This has happened to me several times over the years, and that way I was protected because who to say the envelope doesn't get open up by the wrong person.

You are liable because you took the funds, that is why as a signing company I carry a 1,000,000 liability policy to protect myself and my closer to incase funds are lost.

I hope you have a policy that will cover the funds in case they are lost.

Reply by Linda_H/FL on 12/3/09 10:59am
Msg #312952

Hope people read the entire post here...and take note

that Robin is posting as a signing company, not an individual notary.

"I would of taking the cash to a bank and gotten a cashier check, unless it was under 1000. then I would of wrote a personal check and placed the money in my business account"

Not an option for your typical notary or signing agent - and hopefully new people (or even some not-so-new people) reading this won't come to the conclusion that this is acceptable. It's not the notary's responsibility to go to the bank and get cashier's checks or deposit money and write personal checks on the borrowers' behalf - providing appropriate funds is up to the borrowers....period. Notaries should not be touching any cash at the table at all nor should they be converting borrowers' funds for them - HANDS OFF! That's up to the borrowers to do themselves or work out with their LO...

My .02

Reply by RobinS/MI on 12/3/09 11:33am
Msg #312957

Re: Hope people read the entire post here...and take note

Linda,

I totally agree not to take the funds, However, since she did I was telling her how she could of handled not send cash to FED EX,

Reply by CH2inCA on 12/3/09 11:43am
Msg #312958

Re: Hope people read the entire post here...and take note

Should there be an extra fee for

MONEY LAUNDERING!!!!

Just teasing folks..

But on a more serious note; it is NEVER a good idea to take someone elses money and place it in your account then take that money out again...it is a HUGE audit exception!

Reply by Linda_H/FL on 12/3/09 12:07pm
Msg #312962

Re: Hope people read the entire post here...and take note

The point I'm making, Robin, is you have the latitude as a SS to do that - we non-SS people don't - and I just wanted to make that point clear for any future readers.

I'm not going to discuss what she should have done with the cash because, IMO, it's a moot point - it shouldn't have been accepted because she can't securely transfer the funds with any surety.

Reply by ReneeK_MI on 12/4/09 5:47am
Msg #313080

NSA should NEVER exchange cash for check ...

not only for all the logical reasons, but also for the fact that YOU would then be the payee! Using cash to buy the check certainly doesn't leave a nice paper-trail. There would be all kinds of implications on that - and I find it hard to imagine a settlement agent would accept funds coming on paper with you as the payee, since that's how it would have to show in the ledger. If there were a mortgage involved, no way would the lender accept that either.

Reply by BrendaTx on 12/4/09 6:47am
Msg #313082

To me it sounds like commingling funds no matter

how innocent. Commingling is just a bad idea.

Reply by Julie/MI on 12/3/09 7:41am
Msg #312915

Not acceptable. Period.

If it's a cash purchase, they will have to wire to the title company or take their cash to the drug store and get it converted into money orders. If's it a loan with recission, they can overnight a certified check or money order during that period.

"Of course we all have our own way"

Not in this case, just like Sam's Club at the gas pump: No cash accepted!

Reply by PAW on 12/3/09 7:49am
Msg #312917

Bumper sticker: Driver carries no cash!

And in the small print at the bottom, "He's married!"

Reply by MW/VA on 12/3/09 8:42am
Msg #312921

We're not bonded in VA, but I would never accept cash at closing. If it disappears I would be liable for it--no thanks.

Reply by Bob_Chicago on 12/3/09 8:51am
Msg #312924

Per Fedex (bold) and UPS (red) ..

"Do not send cash or cash equivalent."
I would not have touched cash.
Would tell him to go to bank or otherwise
get funds to TC .

Reply by Linda Juenger on 12/3/09 8:54am
Msg #312925

That's what the 3 day RTC period is for, to get things like

this done. He would have had 3 days to wire it, get a cashiers check etc etc. There is no way I would have accepted that cash and I am bonded, but still don't want the responsibility.

Reply by SueW/Tn on 12/3/09 10:57am
Msg #312951

"we all have our ways of doing things"

Even the thought of this makes my head hurt

Reply by LKT/CA on 12/3/09 12:59pm
Msg #312976

<<<<I had a closing last night where the borrower truly brought CASH to the table, and it was not a small amount. Of course we all have our own way of doing things, and this is what I do:
Have the bo count out the $ in front of me. I put it in an envelope and have then sign the sealed part of the envelope & I sign it also. (Signatures going across the seal vertically). Then I tape over the signatures. (And not with duct tape>>>>

I hope for THIS instance, that you took the cash to the nearest bank and got a cashier's check made to the TC, photocopied the cashier's check and kept a copy for your records and faxed or mailed a copy to the borrowerer for their records before shipping it with the docs. Going forward, I hope you do not take such a risk again.

Reply by Charles_Ca on 12/3/09 1:53pm
Msg #312989

Re: Sending CASH ~ I have a trust account...

so I can just deposit the cash and write a check to Escrow. I can't see notaries having to have a trust account and in all reality in my opoinion that is too much of a risk for a notary to take or even a notary acting as signer for a TC. I'd insist that they have certified funds or even a personal check to send back.

Reply by FAN_IL on 12/3/09 3:44pm
Msg #313004

Re: Sending CASH and even large Cashier's Checks

poses a huge risk, not just to the signing agent but to the borrower as well, as is utterly inadvisable. I would never accept cash, and I won't even accept certified funds in large amounts. In my opinion, anything over $2,500 should always be wired.

If a certified or cashier's check is lost, the borrower will have to purchase a bond and indemnify the issuing bank in order to get that bank to reissue the check. Just paying for the bond is expensive (~$1,000 depending on the amount of the check) and if the original check is ever processed, the borrower, not the bank, is on the hook for the funds.

Even if a signing agent does everything possible to safeguard delivery of the funds, and the check is lost due to a situation outside of their control (like a FedEx truck or plane crashes), it's still a terrible position in wh/ to place an unwitting borrower. Wiring is the safest way to transfer funds. It may take up to 48 hours and cost about $25, but it's worth it.

Reply by Bob_Chicago on 12/3/09 6:22pm
Msg #313027

"I won't even accept certified funds in large amounts"

To each his own. If the bwr sees fit to have had a cashier's check
issued, it is not up to me to tell them what to do.
When bwrs have a large sum due them, then when filling out the
delivery of proceeds form, I usually suggest that they have the funds wired to them.

Reply by FAN_IL on 12/3/09 6:38pm
Msg #313028

Re: Borrowers usually know when they'll be short-to-close

in big way. It's something that generally comes up when I'm confirming the appointment, so I recommend they wire funds at that time. Once they understand the risk, I've never had someone prefer to use a certified check. There's absolutely nothing secure about overnighting a certified check, regardless of the carrier.

Reply by JanetK_CA on 12/4/09 7:15pm
Msg #313137

Re: Borrowers usually know when they'll be short-to-close

I've had some borrowers be concerned about giving out their account information for a wire transfer, afraid that someone will have access to their account. I generally stay away from recommending any course of action for them.