Home Buying in Frederick>Question Details

C.quinones, Home Buyer in Frederick, MD

Now the Realtor Agency has cash my earnest check and still no word from the bank on whether or not they have accepted the offer on this short sale.

Asked by C.quinones, Frederick, MD Mon Sep 17, 2012

Is this a normal procedure?

Help the community by answering this question:

Answers

6
Yeah, in most states we get into trouble for not depositing earnest money into an escrow account upon execution of the contract. In a short sale contract, you still have a contract, just another contingency to satisfy regarding the bank approval. No different than a home sale contingency, but here the contingency is that the bank has to approve the deal between you and the seller.
If you like my answer, best answer, thumbs up me, thx!
1 vote Thank Flag Link Tue Sep 18, 2012
Hi C,

Yes, this is normal procedure UNLESS your contract has a special clause noting that the deposit will be submitted upon bank approval.
1 vote Thank Flag Link Tue Sep 18, 2012
In MARYLAND, the earnest money has to be deposited when the contract is ratified, not when the 3rd party bank gives approval. Your offer was ratified when both you and the owner signed the contract.
1 vote Thank Flag Link Tue Sep 18, 2012
If the buyer and seller have agreed to terms and formed a contract, than it is not unusual at all for the earnest money to be deposited. The 3rd party approval is a contingency like any other.
1 vote Thank Flag Link Mon Sep 17, 2012
Hello-in MD your earnest money check must be deposited when the contract is ratified. Your contract is considered ratified when you and the seller reached an agreement on all items in writing and everything was fully signed off on. The bank (third party) in this short sale still must approve the terms of the sale but this is considered a contingency to your contract only. Your offer hopefully has a deadline for the bank to respond back to you by? If you do not have an answer by this time you can request your earnest money check back.
0 votes Thank Flag Link Fri Sep 21, 2012
Hi C.quinones,

I'm not sure about MD, but in CA it is NOT the normal procedure. The earnest money deposit check is not cashed until you have WRITTEN approval from all lenders involved in the short sale.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Sep 17, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer