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Old 12-12-2012, 01:35 PM
 
4 posts, read 19,456 times
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I'm not in the real estate industry, but am wondering how you all decide which payment methods are secure/guaranteed against fraud. From what I understand, wire transfers are irreversible after 3 business days, which makes it pretty much guaranteed to be reversed. However, I've read others say that certified funds and direct deposit (ACH) can be disputed with the bank 60-90 days after the transaction! Have any of you had this problem before where a buyer provides a certified check and ends up reversing it many days after closing?

I'm trying to find guaranteed methods to receive up to $5000 transactions. Are there any other forms of secure payments?

Your advice is appreciated!
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Old 12-12-2012, 01:49 PM
 
Location: El Dorado Hills, CA
3,720 posts, read 9,955,470 times
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Cashiers checks can be easily faked and it can take weeks to figure that out. There's also a way to check them out (via the issuing bank) to verify they are real.

I recommend talking to your bank, or if it's real estate ask the escrow company, what is the quickest way to ensure the funds are verified and guaranteed.
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Old 12-12-2012, 04:11 PM
 
Location: Salem, OR
15,495 posts, read 40,198,114 times
Reputation: 17353
Quote:
Originally Posted by meamrussian View Post
I'm not in the real estate industry, but am wondering how you all decide which payment methods are secure/guaranteed against fraud. From what I understand, wire transfers are irreversible after 3 business days, which makes it pretty much guaranteed to be reversed. However, I've read others say that certified funds and direct deposit (ACH) can be disputed with the bank 60-90 days after the transaction! Have any of you had this problem before where a buyer provides a certified check and ends up reversing it many days after closing?

I'm trying to find guaranteed methods to receive up to $5000 transactions. Are there any other forms of secure payments?

Your advice is appreciated!
Out here for closing it has to be a cashier's check or a wire transfer. They won't accept any other forms of payment.
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Old 12-12-2012, 04:48 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,726,354 times
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Quote:
Originally Posted by Silverfall View Post
Out here for closing it has to be a cashier's check or a wire transfer. They won't accept any other forms of payment.
Same in Arizona for the closing funds. For EMD a personal check is ok because it has time to clear.
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Old 12-12-2012, 06:36 PM
 
8,539 posts, read 12,271,462 times
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Quote:
Originally Posted by meamrussian View Post
I'm not in the real estate industry, but am wondering how you all decide which payment methods are secure/guaranteed against fraud.
While there are no guarantees in life, for real estate closings here we use bank (cashier's) checks and wire transfers almost exclusively.
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Old 12-12-2012, 06:46 PM
 
Location: Lexington, SC
4,281 posts, read 12,620,147 times
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We had a cashiers check from a national bank overnighted to after a closing. We went to our "new" bank to deposit and the cashier said there would be a 5? day hold on the check. My wife said well not an issue as we do not need the money now. I said BS. This is a cashiers check from a national bank branch not more the 120 miles away. The teller said this is policy. I asked to see the branch manager.

I was livid. I said to her. In this day and age there is no reason your bank needs more then 24 hours to clear this check and deposit the money in my account especially a cashiers check from a national bank. I said I used your bank's debit card this morning and you have already deducted the money from my account (pending transaction) in less then 2 hours. I said decision time here. Either clear this check in 24 hours or I take my business elsewhere. She said let me make a call. I said we will even step outside your office if you want to call me a Ahole on the phone to who you are calling. I said decision time.

The check was deposited in our account the next business day.
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Old 12-12-2012, 06:50 PM
 
Location: Lakewood Ranch, FL
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We are increasingly seeing that the only acceptable method of payment at closing is a wire transfer.
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Old 12-12-2012, 06:53 PM
 
Location: Salem, OR
15,495 posts, read 40,198,114 times
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Quote:
Originally Posted by accufitgolf View Post
We had a cashiers check from a national bank overnighted to after a closing. We went to our "new" bank to deposit and the cashier said there would be a 5? day hold on the check. My wife said well not an issue as we do not need the money now. I said BS. This is a cashiers check from a national bank branch not more the 120 miles away. The teller said this is policy. I asked to see the branch manager.

I was livid. I said to her. In this day and age there is no reason your bank needs more then 24 hours to clear this check and deposit the money in my account especially a cashiers check from a national bank. I said I used your bank's debit card this morning and you have already deducted the money from my account (pending transaction) in less then 2 hours. I said decision time here. Either clear this check in 24 hours or I take my business elsewhere. She said let me make a call. I said we will even step outside your office if you want to call me a Ahole on the phone to who you are calling. I said decision time.

The check was deposited in our account the next business day.
Are you sure it wasn't a bank check and not a cashier's check? They aren't the same thing.
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Old 12-12-2012, 08:27 PM
 
Location: Wonderland
67,666 posts, read 60,249,386 times
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Quote:
Originally Posted by accufitgolf View Post
We had a cashiers check from a national bank overnighted to after a closing. We went to our "new" bank to deposit and the cashier said there would be a 5? day hold on the check. My wife said well not an issue as we do not need the money now. I said BS. This is a cashiers check from a national bank branch not more the 120 miles away. The teller said this is policy. I asked to see the branch manager.

I was livid. I said to her. In this day and age there is no reason your bank needs more then 24 hours to clear this check and deposit the money in my account especially a cashiers check from a national bank. I said I used your bank's debit card this morning and you have already deducted the money from my account (pending transaction) in less then 2 hours. I said decision time here. Either clear this check in 24 hours or I take my business elsewhere. She said let me make a call. I said we will even step outside your office if you want to call me a Ahole on the phone to who you are calling. I said decision time.

The check was deposited in our account the next business day.
I am a former bank manager and also a former realtor.

Cashier's checks are faked ALL THE TIME. Just because you have a cashier's check in hand in NO WAY guarantees that it's a real, or valid check. You may believe it is but even it if is real AT THE TIME it was written, it could have been altered, or cancelled by the buyer, you name it.

Yes, the bank can call the issuing bank and verify a cashier's check SOMETIMES. Sometimes the other bank won't cooperate though, and in that case your bank really can't verify it. I can't blame them for wanting it to clear first in that case.

I often had to make judgment calls, especially when dealing with someone like you who really didn't understand - or perhaps didn't care - what the challenges are when a bank is presented with a piece of paper with the words "cashier's check" printed on them. Oh, if you only KNEW how many fake cashier's checks I've held in my hands - or how many bank employees were FIRED because they didn't place a hold on a cashier's check which then turned out to be a fake, or altered - and the bank lost thousands of dollars.

I would always try to call the other bank if possible. Or, if the check was from a title company, I had contacts at most of the local title companies and could verify that the transaction had occurred and the amount was correct. Or if the customer had matching funds, or these transactions were frequent and within his or her normal scope of business, I would sometimes make an exception to our rule of putting a hold on the check till it cleared.

But retaining a difficult customer at the risk of losing my job? No way.
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Old 12-13-2012, 09:47 AM
 
5,339 posts, read 14,077,050 times
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Wire is the sure thing. A cashier's check can totally be fake, hence a person's bank will almost always put a hold on a high dollar cashier's check.
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