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[Discussion] [USA] Sent a domestic wire transfer to Escrow company to close on a home. Entered the receiving bank’s name in the ‘Beneficiary’ field. What now?

July 01, 2020 at 05:59AM

Hi r/Banking – I wired my escrow company the funds I'm required to send to close on a home. Unfortunately, when I completed the domestic wire transfer form, I entered the escrow company's bank as the beneficiary INSTEAD of the escrow company itself.

All other information was correct: Account number is CORRECT; routing number is CORRECT; and escrow number is CORRECT.

The money left my account on Monday morning (June 29th) and I have the federal reference number for the transfer

I have called my escrow company to explain the error. Throughout the day, the escrow officer claims she has called her bank and provided them with the federal reference number for the wire, but was told they hadn't received anything.

I was able to call my bank earlier today (6/30) and have them send an amendment to the wire with the escrow company correctly listed as the beneficiary.

My questions are as follows:

  • Do bank's normally reject a wire transfer if the account number and routing number are correct, but the beneficiary name is wrong?

  • If a wire IS rejected, what is the usual time frame for this to happen in? (counting on Redditors who may have experience with this) – Also, is there a waiting period for the money to be wired back? Essentially, I want to know if the wire transfer can be returned as quickly as its initial sending.

  • In your experience, how long does it take a wire amendment to reach the receiving bank?

  • Could my escrow officer have called her bank, explained the wire transfer she was looking for and confirmed with them that, yes, that money should be deposited to her account? I actually called her bank and explained the situation to them. The rep couldn't give me any information about whether or not they received the transfer (and I didn't expect her to share that kind of confidential information with me but I just needed to see what I could learn). The rep did say what I did happens a lot and that they will usually call the account holder to verify if the funds should be deposited in their account (provided the account and routing number are correct).

  • Should I be worried? (That is, any more than I am – which is a lot!)

At this point, I'm calling the wire department at my bank as soon as they open in the morning to confirm they processed and sent the wire amendment.

My real estate agent is working with the seller's agent and the seller agent's broker to see what we can do.

Anyways, I'm a little stressed and bummed out because I'm so close and made such a dumb mistake. My lender has already funded my loan and wired the money to the escrow company, but the escrow officer can't accept the funds until she has verified receipt of the money I owe. So now I'm worried about this deal falling through.

What are your thoughts?

[Edited for typos]

submitted by /u/World_Explorerz
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