When buy a house online through an auction site, all the money is generally transferred via wire. The title company gives you all their bank account particulars, you go to your bank, fill out a form and send them the dough.
Immediately after you sign the document, there’s a giant sucking sound when all that money leaves your bank account and makes its way through the Federal Reserve into theirs. In other words, it’s gone. Bah-bye!
At a traditional closing, everyone sits at a table in a nice conference room, documents are signed, certified checks are given and you get the keys. Not when you buy a house online. It doesn’t matter to the seller that you’ve got a minus sign next to a large sum of money on your account ledger. They want you to wait. Yes, more waiting.
Once the funds clear the Federal Reserve and show up in their bank account, the title company sends an e-mail with instructions regarding the lock box on the door as well as the code to get in. They don’t tell you how long this will take, only that it doesn’t happen ‘instantly’.
Well, that giant sucking sound (that was the dough leaving our bank account) happened ‘instantly’ so what do you think we did?