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Anonymous, Home Buyer in Clifton Park, NY

Can my good faith money check be deposited before seller's bank gives final appproval for short sale in NY?

Asked by Anonymous, Clifton Park, NY Mon Oct 31, 2011

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Usually out here in California, the purchase agreement has a Short Sale Addendum clause for the buyer to indicate how they want to proceed on a Short Sale. If you really like the place and want to show the lender how strong your offer is by depositing the good faith money, I think it is a good way to show that you are a serious buyer and in it for the long haul. There are a lot of people thinking they can make offers on several places at the same time and pick and chose what they proceed with, is not the best way to do business. I would suggest, that since you have some hesitancies, maybe you should look at foreclosures instead of short sales. Best, Terry Bell, Realtor, Santa Rosa, CA
0 votes Thank Flag Link Mon Oct 31, 2011
Hello,

The terms of the depositing the deposit check into escrow should be indicated in the purchase agreement. I have had a seller counter my buyer’s purchase agreement asking for the deposit to be submitted to escrow to make sure there was a deposit. All terms must be negotiated between buyer and seller including the deposit check. Best wishes in your home search!

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979
Carol@PerdewHomes.com
DRE985176
0 votes Thank Flag Link Mon Oct 31, 2011
Yes, it's generally deposited into an escrow account...what is your agent and or attorney advising...
0 votes Thank Flag Link Mon Oct 31, 2011
As part of protecting my clients, I usually will not open escrow or deposit their check into escrow until the sellers bank approves the short sale. Some short sales never get approved by the bank, and if you have opened escrow, you will likely have lost money if and when the deal fails to be approved and you need to cancel escrow (escrow wants to be paid as well). So answer is yes, it can be it can be, however if I was your agent I would not let it happen until the bank approved the sale in order to protect you. That is why you need an experienced agent looking out for your interests.
Web Reference: http://JenniferMu.com
0 votes Thank Flag Link Mon Oct 31, 2011
Good faith money is usually deposited by the Seller's Attorney into a non-interest bearing Escrow account.
0 votes Thank Flag Link Mon Oct 31, 2011
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