Foreclosure in 90265>Question Details

Sharon, Home Seller in 90265

I have a house for short sale. the bank extended the sale for the month so the invester could get his money

Asked by Sharon, 90265 Fri Aug 14, 2009

together. on the last day of the extension he said he was still getting the money. Now the house is in forclouser.Do i get the ernest money

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I'm afraid, you have no chance to walk away with EMD money in this situation....
Is the short sale approved or not? Where are you with the bank?( my guess, the price and terms are already approved, am i right?)
You probably still have time to cancel your agreement with these buyers ( since they are not able to proceed) and accept another offer, send it to the bank, close and collect your relocation fee.
0 votes Thank Flag Link Mon Oct 29, 2012
Sharon, since you are not supposed to earn money from a short sale transaction (it usually states this in the short sale approval) .. . The bank is the one that should be owed the deposit, however, keeping a buyer's earnest deposit can be tricky....they must agree to cancel escrow and forfeit their deposit... If they will not sign this cancelation then you can run into problems.... It may be best to move on to a new buyer if the bank is not asking for their money... so far I have not had a bank request the buyers deposit...but it could happen....

Have your realtor ask your escrow officer what to do... Or on a brighter note, is the investor/buyer almost ready? Perhaps the bank will give another extension...sometimes they will do this especially if the buyer is willing to pay a per dium fee for their tardyness....(money for each day they are late closing usually about $100 a day)... Make sure that if you go this route that the buyer is ready to perform and that he/she understands the timeline.

Also, if this does not work out and you move on to another buyer make sure your agent checks the buyers bank statements for funds to close and/or approval letter from a direct lender... In a short sale a buyer must be educated on the process. Make sure your agent lets the buyer agent know how the process works and that they and their buyer understand completely. Comunication is key to a succesful short sale. good luck!
0 votes Thank Flag Link Fri Aug 14, 2009
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