Help us help your buyers ensure smooth sailing to the finish line. Despite our many warnings along the way to buyers that they must send their cash to close in the form of a bank wire to our trust account, we have recently had a rash of buyers attempting to send funds via ACH (automated clearing house). Our trust account has a permanent block against ACH credits. We are rarely notified by our bank that those funds attempted to reach us, nor do we have any control over the speed with which they are credited back to the buyer’s bank account, which can take several days. This leaves the buyer in a position of needing to wire additional funds while their initial ACH transfer clears interbank machinations or delaying closing until such time that their ACH funds are returned to their bank account.
We are noticing a concerning trend of large national banks and some regional ones offering clients different choices of “wires” without delineating which method is a true bank wire v. an ACH debit. Here’s a few key differences to sniff those out: wires reach our trust account the very same day. ACH debits can take days to clear (that is if we did not have a block in place on our account). Typically, bank wires are more expensive ($30-$45) v. ACH ($0-$20). Many banks require an in-person appearance to send a wire. Typically, ACH debits can be done from a cell phone or computer. The theme here is to opt for the more expensive, less convenient option.
Obviously, no one wants to add any further stress or expense to our buyers’ already full plates, but this is one reminder they cannot hear enough. If they are unsure as to whether they are sending a wire, have them reach out directly to their banking representative to make doubly sure they are setting themselves up for a smooth and successful closing.
With this knowledge, now you can Rest Easy.