Posted by nunu on 8/31/11 10:42am
Msg #395858

lost certified funds

what would you do? certified funds were collected and my normal procedure is to staple it to the HUD. Title called to say no check was with the docs at all and did I remember collecting them. Yikes! I really do not remember collecting it but on the other hand, I cannot believe I would not have if funds were due. it was eom and my memory of the signing is fuzzy. Even If I did not attach the check to the Hud I always seal the package for shipping at the table unless faxbacks were required and in this case, they were not. Bank is not going to reissue certified check without a wait time to cancel the other.....omg, i really dont know how to handle this. Title is working on it as well but i know this will land back in my lap and borrowers my have to resign.

Reply by taxpro on 8/31/11 10:44am
Msg #395859

I assume you called the borrowers to ask if they still have the check?

Reply by nunu on 8/31/11 11:01am
Msg #395862

title did call and they said i collected the check

Reply by jba/fl on 8/31/11 10:46am
Msg #395860

Did you ask them if there were staple holes on the HUD? If you collected you said you stapled. Someone could have removed it and then it is not your problem.

Reply by nunu on 8/31/11 11:04am
Msg #395864

there were no staple holes in hud so i am at a total loss.

Reply by BossLadyMD on 8/31/11 11:27am
Msg #395867

The certified check will be re-issued after the wait time

I have never had this happen to me but i would not worry about it. Its not like they gave you cash.

Reply by Ilene C. Seidel on 8/31/11 12:14pm
Msg #395880

Re: The certified check will be re-issued after the wait time

The problem with this is to reissue a bank check it's 90 days out. So unless the bo has that kind of cash it's a problem. This happened to me recently. I had one closing for the evening and took the pkg directly to FEDEX the title company says it wasn't in the pkg. Bo says he saw me put it in the package. I was blamed and not paid. So now when I collect a check I make sure it's stapled to HUD and put it in a manila envelope sealed. If title looses it nothing anyone can do. Don't plan on getting paid tho, that's the way they work.

Reply by Mike_D on 8/31/11 11:32am
Msg #395869

own up to it and fix it if you made the mistake.


title companies have been known to make up stories however. i had this happen to me Friday. Settlement agent called me wondering where a check was saying that i did not include it in the package. i was like "uhhhhh clipped to the settlement statement before shipped, here let me send you a picture."

amazingly the check was located and the the loan funded. i have probably had this happen to me 10 times over the years to where we have been accused of losing checks. the "notary" is an easy fall guy.

Reply by nunu on 8/31/11 11:43am
Msg #395873

if i made the error i would certainly own up to it, i simply cannot remember the moment of collecting the check. title company is still working on it but this should have come up 2 days ago and loan already funded so it seems strange to me they are asking about the check at this late date.

Reply by Lee/AR on 8/31/11 11:47am
Msg #395874

Often there is a special "Funds Due" form to which said check is to be attached. Could this be the case?

Reply by Nina Thomas on 8/31/11 11:55am
Msg #395877

no funds due form lee so that is not the problem either

Reply by Shoshana/AZ on 8/31/11 11:49am
Msg #395875

How could the loan fund without the check? n/m

Reply by nunu on 8/31/11 11:54am
Msg #395876

Re: How could the loan fund without the check?

closing was on 26th so funding today, per signing company/title, normally the question of missing check would have come up at least 2 days ago. i am just at my wits end about where it could be.

Reply by DD/OR on 8/31/11 12:42pm
Msg #395887

I hope that doesn't happen to me. I just completed a signing and I collected the certified check. I put it on top of the documents and clipped the whole thing (I didn't staple it). Then I sealed it and dropped it right away. The borrower saw me seal it. It's possible you forgot to collect it. Good luck.

Reply by nunu on 8/31/11 12:48pm
Msg #395891

if i failed to collect it that would be a first in over 4,000 closings, also, borrower told title i did collect it. i have left a message for borrower to call me, i want to know if he remembers my attaching it to hud and if i sealed package in his presence. it is driving me crazy.

Reply by DD/OR on 8/31/11 12:52pm
Msg #395892

I think Title is pulling your chain. They do that.

Reply by OR on 8/31/11 1:05pm
Msg #395894

Re: So So Sorry it was lost.

I bet you are just sick over this. I would ask what happens next and pray that it gets found.
I know you said that you always staple the check and there was no staple marks. I would guess that it is still at the borrowers.

I carry a printer in my car with an inverter. When I collect funds from the borrower I too staple it to the hud signature page. I then take a photo copy of the check and staple to the hud. I tell the borrowers that this is there receipt that they gave the check to me.

I will pray that they find it too.

Reply by nunu on 8/31/11 1:10pm
Msg #395895

Re: So So Sorry it was lost.

thank you everyone for your imput, borrower did call me and is on his way home to see if by some miracle he has it. he is not placing blame either but may later if funding does not happen because of it. he did not remember what i did with the check either darn it.

Reply by nunu on 8/31/11 3:36pm
Msg #395915

Re: So So Sorry it was lost.

yippeeee, borrower found the certified check at home so all is well, wasn't good of me to overlook picking it up but am so relieved. a lesson learned.

Reply by GOLDGIRL/CA on 8/31/11 4:22pm
Msg #395919

Whew!

Glad it worked out, nunu. Just a hint (not that this will ever happen to you again), but when I know there are funds due, I immediately pull out an envelope, write "check enclosed" and put it on the table. Then, I put all the docs as they are being signed on top of the envelope. So if the borrower doesn't immediately hand over the check, which often they don't, when I gather up all the docs to leave I see the envelope and am reminded to get the check. It's saved my patootie a few times!

Reply by titleme2nc on 8/31/11 5:11pm
Msg #395927

I believe I will use the envelope method, to avoid this. ;-) n/m

Reply by jojo_MN on 8/31/11 5:40pm
Msg #395930

I usually tape the check to a full size sheet of paper, plus position it so the binder clip is also on top of the check. This is put on the top of the pile when I send it back. No chance of it falling out of the FedEx/UPS envelope when it is opened.

Reply by Susan Fischer on 8/31/11 7:34pm
Msg #395939

Hi, Nunu, what a bummer. Haven't read the thread, so if I'm

repeating someone, I apologize beforehand.

One of the things I learned early was to document the cert funds info in my journal, in completion reports, and emails to all who emailed me re the signing/docs/etc. When everyone I can tell knows the amount collected, the bank and check #, and the doc it was stapled to - upper left-hand corner - before- they ever receive docs, the chances of "missing" just hasn't been an issue.

As a kicker, if I collect funds, I make a copy for my file or if dropping immediately, take a photo with my phone, and delete when invoice is paid.

I'm sure there are other great tips above.

Reply by LKT/CA on 8/31/11 7:47pm
Msg #395941

<<<certified funds were collected and my normal procedure is to staple it to the HUD.>>>

Here's what I do <and I make a big show of it in front of the borrowers>: I take out an odd sized, neon colored envelope and use a green sharpie to write "FUNDS $$$$" in all caps and dollar signs across the front. Then I put the check in the envelope, use a glue stick to seal it, put a sticker or decal over the seam of the envelope. After that, I staple the envelope across the top to a throwaway piece of paper (like the online map driving directions I printed....or whatever) and place it on top of the stack.

I ensure that the borrowers are watching me, this way they are on MY side if the TC loses it, then tries to accuse the Notary of not sending the check.

P.S. I do have the newest GPS, however, like my older one, it sends me on wild goose chases so for appointments, I print out a map from Google/MapQuest/Yahoo as a backup.

Reply by Linda_in_MI on 8/31/11 8:31pm
Msg #395944

I use the neon envelope and receipt book

I have a collection of #10 envelopes of various neon colors. Right now I'm using purple. I have run them through my printer and pre-printed on the front in bold, big Arial type THIS ENVELOPE CONTAINS FUNDS FROM BORROWER. If there are funds due from borrower--or in general notary work when I collect my notary fee--I have a receipt book that lets me lists the amount of the check/fee, mileage fee (if applicable), or other fees involved. I also note the check number, and whether it is a cashiers check or regular check. After I write the receipt and give that to the borrower/client, I put the check in the envelope in front of the borrower and then have that neon envelope on top of the packet that goes back to title/signing service.

Reply by Ali/IL on 8/31/11 8:57pm
Msg #395948

Re: I use the neon envelope and receipt book

I am so happy it was found! It is easy to forget the check. I did just yesterday good thing borrower was close by or it would have caused time to go back.

I have gotten calls from companies looking for the check when all along it was in package. I have learned to staple it. Reminds me...need to go buy staples.

Reply by Claudine Osborne on 8/31/11 9:51pm
Msg #395949

Re: I use the neon envelope and receipt book

I use colored envelopes as well. I write across the front the bos name and amount of check. I then attach it to the HUD..Never had an issue..yet!

I'm glad your situation was resolved. Breathe a sign of relief, dust yourself off and move forward!

Reply by Bravo on 9/1/11 12:45pm
Msg #395999

There is no escrow officer with her/his salt that would allow a transaction to go to funding without having secured the funds to close it. I too believe that the TC is going to magically discover said check floating around on one of their desks or under their trash can on the floor.
I can't say not to be worried because its a serious thing, but my best guess is that THEY do have it...somewhere.

Reply by Linda_H/FL on 9/1/11 6:06pm
Msg #396029

She already said - it was on borrower's table...

but I agree - no loan would fund with monies outstanding