Recently a closing was delayed, let me share this scenario offered up by one of our Closing Specialists, Stephanie Monzo…

You have a client purchasing a property and plans to bring  $10,000.00 as a down payment for the purchase.  You have prepared your client to wire the funds to the Title Company and explained the GF Law.  However, due to a few delays in the process figures do not arrive to the Title Company until late the day before closing.  Your client makes a trip to the Bank and estimates they need to bring $10,600.00 based on figures from the GFE.  The bottom line on the HUD ends up being $10,750.00.  The buyer shows up with $150.00 in a cashiers check.  DUE to the Good Funds Law a Title Company cannot accept the cashiers check.  Any funds $10,000.00 and over must be in the form of wire funds.  A cashiers check or personal check  will not be acceptable.

The point to this scenario is to always over estimate what your client should wire to the Title Company whenever you’re working with tight deadlines.  The Title Comapny can always refund the overage.