‘Incredibly stressful and depressing’: Massachusetts man waited for check to clear for down payment on new house. Then Bank of America froze the funds

A Massachusetts man recently took to Reddit to share a stressful experience on the Bank of America subreddit. He wrote that the funds he needed for a deposit on a new house were frozen after being initially cleared. The user, known as aronianm, explained that after selling his home for the first time, he made a mistake and deposited the proceeds into his account through a check. He now knows that he should have requested a wire transfer. 

The Reddit user noted in his post that he and his wife sold their house because they were in the middle of moving. He claimed, “I deposited the check at Bank of America. It initially cleared, after going through 5 days of security and me telling them that this money is for closing and the whole story so we thought everything was fine. Then, without warning, the funds were placed back on hold again.”

According to his post, the Redditor called the bank multiple times, stating that a “delay could literally cost us the house.” He wrote, “I repeatedly offered to provide any documentation they needed, contact the closing attorney, verify the funds, whatever it took, but it felt like no one understood the real-world impact of delaying access to a legitimate check from a home sale.” He described the incident as an “incredibly stressful and depressing situation for my family.”

It wasn’t personal, just the rules

Aronianm’s situation highlights a common pitfall for first-time homebuyers who might not fully grasp the technical differences between various payment methods. According to Smart Asset, while both cashier’s checks and wire transfers are safer than personal checks for large transactions like home purchases, they carry distinct pros and cons. 

The site noted that cashier’s checks are generally less expensive but can take one to two days or more to clear, and some title offices may even place caps on the amount they accept. In contrast, wire transfers are more expensive, often costing between $10 and $30 for domestic transfers, but they are significantly faster and widely considered the most secure option for high-value real estate transactions.

Smart Asset notes that title companies usually prefer these secure methods. After all, unlike personal checks, they guarantee the availability of funds. A cashier’s check is backed by the bank, which makes it a common choice for smaller closing costs, but it can still trigger security inquiries. Wire transfers, while sometimes incurring higher fees, are the gold standard for speed and security in real estate. 

Many of the commenters pointed out that the bank’s policies are standard operating procedure. One user bluntly stated, “They are allowed to do this under Reg CC. Your emergency is not their problem.” Another user offered a more critical perspective on the user’s choice of payment, saying, “This is on you. I wouldn’t spend a check of large value until the funds clear and I can’t fault a bank for verifying the funds before they let you spend it.” 

Others question why the professionals did not provide advice. One commenter remarked, “Your lender should have been in the loop and would have very blatantly told you to wire and exactly for this reason.”

In the comments, the Redditor lamented the feedback he was getting. He stated, “As a first time home seller, I didn’t know there was a significant difference. It’s easy to see the right choice in hindsight, but that advice would have been invaluable before closing. OR EVEN SOMEONE FROM BANK OF AMERICA.” Despite that realization, he was upset that the bank couldn’t work with him. He wrote, “They don’t care. I had the check, and they are the only road block.”

In an update, the original poster told the community that things resolved in time for him to close on his house. He also admitted he learned some hard lessons. “If you’re dealing with a time sensitive issue at Bank of America, don’t rely solely on the phone support. Going into a branch and speaking with someone in person was much more effective.” One Colorado woman who was defrauded recently was convinced not to do so, leading her to lose her life savings. 

He noted that he didn’t completely understand why the check was flagged twice. However, the Redditor claimed that a manager told him there was a significant increase in fraud. So, “extended holds and additional reviews have become more common.” In fact, a CBC journalist was almost defrauded recently, but was able to dodge it when he mentioned the sting operation to a teller. 

As one Reddit user pointed out, “I’m sure BofA is not as empathetic as they could be, but you have to understand that they can’t unfreeze funds just because you need it to buy a house.”