Home Buying in Massachusetts>Question Details

Jgmacarthy, Home Buyer in Massachusetts

Buying a short sale. Need to know when the earnest check given at the P & S signing is supposed to be cashed?

Asked by Jgmacarthy, Massachusetts Sat May 8, 2010

We put in an offer on a short sale home and it was accepted in mid March. We submitted a $1000 deposit with the offer which has since been cashed. Both parties signed the P & S (Standard Massachusetts P &S) and we submitted another $5000 deposit on March 31st. It is now May 8th, we are waiting on the bank approval, and noticed yesterday that the Cashier's Check submitted at the P & S signing has not yet been cashed. Our Realtor is suprised and is checking with the seller's agent as to why it has not been cashed yet.

I need to know in Massachusetts short sales deals does the earnest check given at P & S signing typically get cashed when the seller signs the P & S or when the bank approves the sale?

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Answers

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Like any other offer, the initial deposit is deposited into the brokers escrow account. You should however have made any additional deposit payable once the short sale was accepte din writing by the bank. Becuase 3/4 of all short sales dont get accepted, it is an awful lot of money to pay on a 1 in 4 gamble. As long as the listing agent is a licensed broker, at least your deposit is protected in their escrow account. Depending how your purchase and sales is written and what you agreed to, is when the 2nd deposit is deposited or held.
Web Reference: http://www.ScottSellsNH.com
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