Remember Patience is the key to any short-sale transaction. Most buyers get fedup and walk away after a few months. Those that can wait it out and deal with the lenders Bull, usually receive a tremendous deal.
Hope it all works out for you,
Rob Hughes: Long & Foster Real Estate Inc.
- accompanies the offer
- upon acceptance (Effective Date)
- to be made within x days (usually 3 days after Effective Date)\
Good question. I've seen it done two ways, and the accurate answer is it depends on how the contract is written.
The majority of the time, the good faith deposit is not funded by the buyer until written approval has been received from the lender. Then, you open escrow and the deposit is placed into escrow.
However, recently I had a listing agent (I was representing the buyer) ask my buyers to place their good faith deposit into escrow for 3 months. This would serve as a means to show that my clients were dedicated to waiting out the lengthy short sale process, and couldn't pull out of the purchase (without losing their deposit) if they found another home. In this case, my clients placed their deposit into escrow upon acceptance of the offer, before written approval was received.
Hope that helps. Happy Hunting!