Bad Information Made Clients Fly Halfway Around the World

By
Real Estate Broker/Owner with Charlemagne International Properties BRE# 01147470

The lender spoke with confidence, maybe even a bit of swagger, when I asked early in the transaction if my clients could wire money from a US bank account to a California escrow company from China.  "No problem," came his quick reply.  The same information was repeated to my client.  It would be handled with security questions and the use of a private banker familiar with the client. 

 

Wrong.  Big problem.  Exactly one week before the scheduled close of escrow I received the 'bad news' call.  Even though my client has a long banking relationship (both business and personal) with the bank, he was never assigned a private banker. At the eleventh hour we were told it could not be done due to an increase in fraud. Two weeks prior I asked the lender if arrangements were in place to transfer funds.  He said it was 'being taken care of."  

 

Bad information from a lender made my clients fly halfway around the world.  They arrived in the US yesterday, went to the bank and completed the wire transfer of funds.  Oh, they transferred a bit more than required--now, no loan is needed.

 

I suppose the lender was not expecting this tidbit of news either.

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Topic:
Lending / Financial
Location:
California Los Angeles County
Groups:
Cosmic Cow Pie...The Rome Way
"Whacked"!!!
The Ninety-ninth Percentile
Local Expert
Tags:
palos verdes luxury homes for sale
palos verdes real estate broker agent norma toering

Comments 36 New Comment

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Ambassador
1,243,367
Norma Toering
Palos Verdes Homes in Los Angeles Area
Charlemagne International Properties

Eric - Sage advice.

June 26, 2012 10:56 AM
Rainmaker
252,064
Mike & Eve Alexander
Exclusively Representing ONLY Orlando Home Buyers
Buyers Broker of Florida

I just had a closing from hell with BOA as the lender (buyers choice, not mine).

 

Day of closing Buyer went to BOA where he has all his funds and tries to do a wire transfer...the banks does NOT know how to do one so they send him to another town 50 minutes away to another BOA bank...they ALSO do not know how to do do a wire transfer there either,  but finally figure it out...and we barely close that day.

How can BOA (in the states) not know how to wire transfer someone's money?

 

Eve in Orlando

June 26, 2012 10:57 AM
Ambassador
1,243,367
Norma Toering
Palos Verdes Homes in Los Angeles Area
Charlemagne International Properties

Michael - As illogical as it seems, this lender told the same 'story' to the buyer and to me multiple times.  

June 26, 2012 10:59 AM
Ambassador
1,243,367
Norma Toering
Palos Verdes Homes in Los Angeles Area
Charlemagne International Properties

Tammie - A little sweet satisfaction is always good.  

June 26, 2012 11:01 AM
Rainmaker
409,412
Michelle Francis
Realtor, Buckhead Atlanta Homes for Sale & Lease
Tim Francis Realty LLC

Norma, 

Crazy.  Working with internationals and different banking systems is COMPLEX.  There is no simple answer and especially when you throw China in the mix.  Europeans seem to be able to wire easier.  

I just received an overnight of a Security Deposit check for a very high end lease from China.  Wiring would have been more complex. 

All the best, Michelle

PS - LOVE that they had enough not to need a loan.  If you can't do your job correctly that will happen.

June 26, 2012 11:01 AM
Ambassador
1,243,367
Norma Toering
Palos Verdes Homes in Los Angeles Area
Charlemagne International Properties

Buyers Broker of Florida - Correct me if I'm wrong, but isn't that what banks do--move money back and forth?

June 26, 2012 11:05 AM
Rainmaker
937,894
Adrian Willanger
Profit from my two decades of experience
206 909-7536 TheHomeFunnel.com

Norma, I guess this is a bid perplexing to me, I thought banks were set-up to do this all the time. Good job getting it done. 

June 26, 2012 11:17 AM
Rainer
64,090
Greg Freeman
The Michael Group

Wow, thanks for sharing this...I love it when a plan comes together.

June 26, 2012 11:26 AM
Rainmaker
1,249,479
Carla Muss-Jacobs, Principal Broker/Owner
Buyer Focused ~ Buyer Results
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time

An interesting read.  Was this lender your recommendation?  I don't see why thelender wasn't on top of this.  So if I understand correctly, a wire transfer from a US BANK ACCOUNT to an escrow office in California was all that was recquired to close the transaction.  The clients happened to be in China.  The clients could have been anywhere in the world, IMHO -- it's their funds in a US bank, no?!?   If they had funds in a US Bank, and simply wanted to wire from their bank to the escrow office to close their deal, what was the problem??  Anyway, they seemed to have their Plan B in place.

June 26, 2012 12:00 PM
Rainmaker
545,969
Gary Frimann
California Broker and REALTOR
Eagle Ridge Realty / Signature Homes & Estates

Touche!  I had something similar happen about 3 years ago..  The guy got jacked around by his lender so much that he just paid cash.  Multi-million dollar purchase.  Hopefully, the lender did not spend the money beforehand.

June 26, 2012 12:17 PM
Rainmaker
166,283
Dale Samples
REALTOR -Homes for Sale Charleston, West Virgini
304.741.4705 • www.dalesamples.com
Wow. I can imagine your clients were steaming. Hurrah for them having enough cash to pay in full.
June 26, 2012 12:43 PM
Rainmaker
882,016
Jane Peters
Connecting you to the L.A. real estate scene
Power Brokers Int'l

Ah, sweet justice.  

June 26, 2012 01:29 PM
Rainmaker
337,507
Karen Feltman
Relocation Specialist
Cedar Rapids/Iowa City, IA Skogman Realty

Unfortunate that the lender did not have their ducks in a row to complete the transaction.  How ironic that it utlitmately cost them doing the loan at all.  Good for your buyers!  I wonder if they will still remain clients of that bank.....

June 26, 2012 02:15 PM
Rainmaker
647,360
Evelyn Kennedy
Alameda, Real Estate, Alameda, CA
Gallagher & Lindsey, Alameda, California

Norma:

How frustrating for you and your client.  The lender should have to take care of the problem at no cost to your client.  All the lender I deal with have been good to their word.

June 26, 2012 03:05 PM
Rainer
57,445
Wayne Jackson
North Idaho Realtor, Serving Coeur dnullAlene and Hayden Lake
Lakeshore Realty 208-714-4109

Norma, Great post. I just love those cash buyers. I just had 3 in a row and am working with 2 more.

June 26, 2012 09:31 PM
Ambassador
1,550,626
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

Norma - Though I've not had a buyer have to fly half way around the world yet, I have many who are extremely frustrated with lenders.

June 26, 2012 09:51 PM
Rainmaker
572,328
Phil Leng
Phil Leng Team - Residential Real Estate Experts &
Keller Williams Eastside Market Center

Hi Norma,

Good buyers.

Bad loan officer at the bank.

They probably came here cheaper than all the loan fees anyway.

Justice was done.

Phil

June 27, 2012 02:44 AM
Ambassador
1,243,367
Norma Toering
Palos Verdes Homes in Los Angeles Area
Charlemagne International Properties

I asked the lender to pick up the cost of plane tickets and the answer was a quick and curt, "No."  It's that 'too big to fail' attitude that will cause them to lose one loan at a time.

 

Thanks for your comments, everyone.  Writing this post helped my blood pressure...

 

Yes, Carla, the money was in a US bank and they could not arrange for my client (a US citizen) to authorize wiring the funds from China.  They insisted on a face-to-face. This is one of the Big Three...

June 27, 2012 04:37 AM
Ambassador
625,591
Doug Rogers
Your Pineville Louisiana Agent
Bayou Properties Realty

Hope the lender enjoyed working for free! In our business there is nothing wrong with saying, "I don't know".

June 27, 2012 07:30 AM
Rainmaker
281,804
Carra Riley
CRB, CRS, GRI
Author, Speaker, Consultant, Carra Riley Inc.

Norma ~  now that is a war story to top them all.. I thought I had heard everything!  New challenges every single day.. thanks for the heads up! 


Featured in Cosmic Cow Pie....The Rome Way

June 27, 2012 09:19 AM
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Ambassador
1,243,367

Norma Toering

Palos Verdes Homes in Los Angeles Area
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I am a California real estate Broker-owner. Tune in for Best Buys in Palos Verdes; Market Updates; Buy & Sell Signals; Advice to Buyers & Sellers and other real estate related topics of interest. Updates will be posted on all four cities on the Palos Verdes Peninsula, PV School District and other happenings on The Hill.

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