Posted by LindaD/NJ on 11/19/09 8:46am
Msg #311523

Certified funds @ closing

I cannot believe how many closing I do that when I ask the borrowers for the "certified check", they say, "Oh!;" "No one said it had to be certified." As we know, with certain lenders and title co's. amount varies on when cert. funds are needed, but honestly, do LO's whip out their check book at their purchase or refi? With all the last minute docs, we don't even get the heads up before we get the pkg. to let the Bo's know. And not that it is our responsibility.

Reply by MW/VA on 11/19/09 8:51am
Msg #311525

It can be a real problem because they aren't given an amt. in time to get to the bank.
Many lenders offer a wire funds option. Also, they can get their check the next day & send it separately. It's up to the tc, of course, but there are usually options.

Reply by SShoreDude on 11/19/09 8:51am
Msg #311526

And being on the East Coast, these out of state title companies must think that banks out here are open late bcs they will have figures ready at like 7 PM and then ask for a cert. check and expect one. I usually have the borrower give me a personal check and have them call the title company to arrainge something different if they think thats a problem.

Reply by LindaD/NJ on 11/19/09 9:06am
Msg #311529

Wire is an option but it usually costs, but if you don't

have wire instuctions in pkg. you are back to figuring out what will work for all parties involved.

Reply by MW/VA on 11/19/09 9:37am
Msg #311530

Re: Wire is an option but it usually costs, but if you don't

As you said, it's not our responsibility. It's certainly not up to us to "figure out what will work for all parties involved". It's up to the tc to work that out with the borrower.

Reply by Ilene C. Seidel on 11/19/09 10:01am
Msg #311533

No matter how late the docs arrive if funds are due I call the bo to confirm they have certified funds, if they don't I bring another overnite envelope and label instructing the loan will not fund until the check is sent. And if you don't call you may be out of a closing all together so do call no matter how late that way you don't waste your time and $$.

Reply by jba/fl on 11/19/09 10:04am
Msg #311534

I'm like you Ilene - call, tell them, and if that isn't what they were expecting, I haven't printed either and there is only the call as a time waster.

LO's & TC's should be the ones with this surprise - I hate being the bearer of this news. Very aggravating.

Reply by MW/VA on 11/19/09 10:35am
Msg #311542

Interesting that this came up. I have an appt. for Sat. am for a signing for an out of state property. Borrowers are traveling. She just called with concerns about the issue of the money due at signing. Their bank doesn't have any branches here. Since the HUD probably won't be ready until late Friday, I suggested she call the LO to see what arrangements can be made. IMO, as long as the funds due aren't a surprise (had a few of those--they didn't expect it & didn't have the money) there are usually options.

Reply by Kay/IL on 11/19/09 11:31am
Msg #311553

From my experience, the title company will accept certified checks or wired funds up until the recisssion period deadline. When I get last minute docs for a closing late in the day with monies due, I'll explain to the borrower these options and provide them with overnight information or wiring instruction (if available). Just check the closing instructions for verification.

In most instances, if the funds due from the borrower are less than a certain amount (usually between $1,500 and $5,000 depending on the title company), the title company will accept a personal check.

Reply by Les_CO on 11/19/09 11:33am
Msg #311554

Where does one get “Certified Funds” these days? I know where to get a ‘Bank Check’ or a ‘Cashier’s Check’, but a genuine ‘Certified Check’?

Reply by LindaD/NJ on 11/19/09 1:06pm
Msg #311560

Les absolutey right. Bo can't get a cert check! writing a

personal check. I don't believe banks write cert. checks anymore. Title okay with it. over the amount.