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Wired transfers in real estate is more common these days as many are selling one house and buying another so they need the money then and there. We had to wire money when we bought our current house. Our banker was at the closing of our sold house because we had a personal loan on the house in order to have the cash to pay for the new one prior to closing the old one so all that was handled by them and the remaining money was returned to our account that day.
Caveat if you get an email from your real estate agent or the settlement company telling you where to wire the money for purchase of a house call them to verify that the email is valid. Some agents have gotten hacked and emails were sent to clients to wire the money to a scammer instead of the real deal. Once you wire money, especially to a scammer account, it is almost impossible to get it back.
I recently sold a house and the settlement company cut me a check for a 6 figure sum. I went into a capital one branch and deposited the check. It occurred like any other transaction. A few hours later I got the following in an email:
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Holds are very annoying, but 2 days doesn't sound bad. I get it though, banks suck.
I had a week hold on a $12,000 inheritance check years ago that was made out from an investment/wealth management firm once. Wasn't too happy about that one. Not like it was a hand scribbled fake check.
A lot of scams use fake Cashiers Checks which should be considered almost as cash, so I can see banks holding out for a check to truly clear with the issuing bank.
The Fedwire Funds Transfer system is a real-time gross settlement service, so every individual transaction is “cleared” as soon as it executes, and can’t be reversed without the receiving bank agreeing to send the funds back in a new transaction.
A lot of scams use fake Cashiers Checks which should be considered almost as cash, so I can see banks holding out for a check to truly clear with the issuing bank.
The Fedwire Funds Transfer system is a real-time gross settlement service, so every individual transaction is “cleared” as soon as it executes, and can’t be reversed without the receiving bank agreeing to send the funds back in a new transaction.
Yes, wires are better.
But couldn't the bank just contact the other bank and run the numbers at the bottom with cashiers checks if they saw an "iffy" one?
They didn’t lock down your account to protect you, they did it to protect them. And if you don’t make large deposits ever I could see their want to add in protection for themselves
This^^^^^
It also may have to do with your relationship with the bank. If aren't a long time customer or don't have large transactions they might be nervous.
Bank of America held a $12,000 deposit on me last year. Their system goes back 18 months, not a single bounced check on me nor had I ever written one that was insufficient funds. 12K total was about 9 checks so not a single large check written on an out of state bank. I opened a new account in a local bank the next day, deposited 5K (multiple checks) and no hold (but I had a personal relationship with them already). Funds cleared and BOA account was closed that day after 19 years of being a client with millions of dollars going through that account. Manager was trying to salvage the relationship, I reminded her she could do nothing to help me the week before so there is nothing to salvage. She pivoted and said I can close the account online, I told her no thank you I want to close it here in person at her branch so she got full credit for losing a business account.
BOA was convenient, they literally have branches everywhere! That being said their ATM's sucked for depositing checks, the new back has not returned a single check to me yet (as not able to deposit).
Agree. I've always used direct wire transfers to move large sums...IME, previous RE transactions and distributing lump sum inheritances to heirs; one international. No hitches.
Holds are very annoying, but 2 days doesn't sound bad. I get it though, banks suck.
I had a week hold on a $12,000 inheritance check years ago that was made out from an investment/wealth management firm once. Wasn't too happy about that one. Not like it was a hand scribbled fake check.
Why weren’t you happy? You don’t think corporate looking checks bounce? Aren’t subject to fraud? Banks might suck but the average person’s ability to manage finances is worse
Unless you are pressed for funds I’m not sure what difference it really makes for a wire vs a check. A wire surely is more convenient but most of the time it’s simply not impactful either way
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