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How important is to follow up with your transactions closely until it ends?

Posted by Peter Karami on August 7, 2012 at 7:05 PM

A few years back, I was representing a well respected client who was buying a bank owned home (foreclosure) in cash. I was following up with the transaction in every step until the last step which was sending the closing funds to the escrow. The escrow was supposed to close two days after that day.

I received a phone call requesting my client to wire the closing funds to escrow. Thus, I contacted my client and ask her to do so. She went to her bank and the banker told her that she will not be able to wire such huge amount of money at that time because she made a large deposit the day before. However, the banker suggested providing a cashier’s check to her so she would be able to mail it to the escrow. I don’t know how and where the confusion occurred which the buyer mailed the cashier’s check to the bank’s address instead of escrow. A few days after she mailed the check, I contacted the escrow and asked if they received the cashier’s check and they said no!!!!

Then, I contacted the buyer and she emailed me the proof of signature that bank’s employee signed when received the cashier’s check. Therefore, I contacted the bank’s employee and ask him what he did with the cashier’s check. He said, he realized the cashier’s check should go to the escrow which was the bank’s client, so he was kind to mail it to the escrow. He suggested me to wait a few more days until escrow will receive the mail. A few days were long enough and it took about two weeks. Finally, escrow did not receive the cashier’s check. If you remember this was a REO home and the seller was also a bank. I contacted the seller’s agent and explained the situation but the agent said that they can not wait longer than a month. I contacted Bank of America which was the cashier’s check originator and requested to void the lost cashier’s check and reissue another one so we could close the escrow. They said they can void the lost cashier’s check but they cannot issue a new cashier’s check until 90 das passes from the date the first check was originated. Ninety days was a very long time and the seller would not wait that long. The seller requested cancelling the escrow which we did cancel and waited 60 more days passed so the buyer was able to recover her fund. However, the lesson was learned that follow up with every transaction until it is closed.


Categories: Real Estate Informational Posts, Real Estate Sells Related Posts

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