Lou,

I would recommend that you review the contract you signed. It should state how & when the earnest money deposit is due. Depending on which contract was used, it could be in the additional terms (FAR-9) or riders & addendas (FAR/BAR-8 & FAR/BAR-2x).

The short sale addendum should be reviewed as well. Assuming you haven't been signing extensions, you are probably out of contract. Section 5 also refers to multiple offers.

I agree with the other agents that 8 months is a bit extreme. Unfortunately, short sales seem to vary by contract and bank negotiations.

Good luck and any questions, please contact me.

Leslie

Lou, in a short sale, it is not unusual for a deposit not to be due until the bank approves the short sale. In essence, your agent is basically looking out for your interests in saying that until the bank approves your offer, you shouldn't need to put any money down. That being said, your agent should be updating you every week to 10 days on what is happening with the negotaitions with the short sale lender. 8 months is a bit extreme to wait for an answer. I think you need to press your agent for answers. As a Certified Distressed Property Expert, I can tell you that if you don't get answers, then you need to move on to work with someone who has the certification that I do and knows their way around short sales. Good luck to you.

Hi Lou,

Nice to see a cross country answer, but per the question no deposit was made.

Did the offer you made include a FARBAR Short Sale addendum? That would spell out the rules for when an escrow deposit is due. If your offer did not include the addendum, then the listing agent has no idea what they are doing, which would go a long way to explaining the 8 month delay.

Do yourself a favor, use a buyer's agent next time. They'll definitely answer the phone when you call.

Good luck, Mark

Until your short sale offer gets approved by the lender, the deposit stays on the real estate office's trust book. Once the lender approves your offer and sends an approval letter stating their terms, then the clock starts ticking, and your deposit will go into your escrow account at the escow company usually decided by the lender.