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I paid the escrow company to directly deposit my proceeds. My realtor had told me that if I did it this way,I would get my money deposited immediately the next day. I got a call on Thursday at 1:48 pm telling me it funded. Today, on Friday, I was told that I would not get the money until Monday.
I am wondering if this sounds right?
Direct Deposits should be available on the day it is received by your bank or by its payment date. However, there may be exceptions to the direct deposit rules that could explain it. Who told you it would not be available until Monday?
The escrow company. The escrow company charged me $30 to have it deposited directly.My agent told me that this was the fastest way to get my money.Since I'm not sure how this works exactly,I am wondering why the money is not in my account today(Friday) if it funded on Thursday by 1:38. It had already been 24 hours. Thanks.
Funding just means that's when the buyers' lender approved all the signed paperwork. You wouldn't get your funds until the escrow company balances their end and cuts all their checks. Even if it took them a couple of hours on Thursday to do this, you should have received the funds on Friday. Many banks release funds the next day if sent after 12 noon, or some are 3pm, and some have no deadlines.
Either way, if you didn't get your funds on Friday, the escrow company messed up and didn't send the wire until late on Friday instead of Thursday.
Is it possible that it's the Homeland Security rule on large funds that held up while the paperwork is being verified? Just wondering, because I know when you transfer or cash over 10k they make you sign abunch of paperwork now.
If the escrow company gave you the news, then my only conclusion is that there was a serious delay between the time they got funded and the time they actually made the deposit into your account. I wondered, too, about the sum of money being deposited and if that could be the cause. However, the funds are from a trust/escrow account - and then again, if there was a hold on the money, you would be waiting past Monday for sure. The delay is definitely with the escrow company. It's as if you could've saved yourself $30 and picked up the check yourself!
There is no rule that larger sums of money have to be held up for verification. Your escrow company probably does this to everyone, and bit by bit they make a sizable amount of interest by holding everyone's money for a few days. Your agent failed you by letting you "close" without demanding that your money be immediately released to you. The wire process is not instantaneous, but in almost all cases it reaches its destination (your account) within a few hours after the wire is initiated.
If the escrow company didn't have all of its ducks in a row and ready to close before, say, 3pm or so (time varies depending on banks involved in the wire) the wire would typically either be initiated late in the day and not arrive at your bank until the next day, or the escrow company would simply hold it until the following day to try to ensure that it doesn't get misdirected / mishandled overnight. Other than negligence / mistake by the escrow company, there is no reason that it should not be initiated and received on Friday if the escrow funded on Thursday at 2pm.
Bottom line is that you have been taken advantage of.
Was this for a purchase or a refi? A refi has a 3 day hold on fund distribution.
Doesn't sound like that is the case here, since the escrow company said the transaction had funded. The 3 day waiting period is at the bank, not the escrow company, so there would be no funding until the waiting period was over.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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In CA it would be illegal for the escrow company to received interest on the float. As earlier pointed out, funding is not the same as recording. Funding usually occurs the day before escrow closes. If recording didn't occur until the afternoon, it may have happened after the wire cut off time at the bank and therefore didn't make it into the system until Monday.
In my county, if the recording isn't perfect they reject it until the document is perfect, delaying the recording.
Last edited by DMenscha; 11-03-2008 at 12:41 PM..
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