Home Buying in Anaheim>Question Details

Teresap, Home Buyer in Cypress, CA

on an unapproved short sale with the seller acceptance of an offer when does the good faith deposit need to be funded?

Asked by Teresap, Cypress, CA Thu Dec 8, 2011

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The Short Sale Addendum (SSA) that you signed will let you know. The SSA offers 2 options. 1) Due at acceptance (within 3 days) 2) Due when the seller can show proof of bank approval. By the way, it may seem obvious to the buyer to take 2nd option, but the 1st option provides a much stronger offer to the bank. The only reason not to do it is so that the funds are available to do another transaction. The banks know that, so in a competitive situation showing that you are committed to the transaction could sway the deal in your favor
0 votes Thank Flag Link Mon Dec 12, 2011
This should be spelled out in the purchase contract. Review the contract and if it is not clear contact your agent for clarification.
0 votes Thank Flag Link Fri Dec 9, 2011
The deposit on contract should be between 1,000 and 3,000, that's it.

Marco Gomez
NY state Associate Broker
Keller Williams Landmark II
Marco.gomez@gmail.com
0 votes Thank Flag Link Fri Dec 9, 2011
Check with a reputable short-sale agent in your area Teresap. Most agents have no clue about these transactions. In my locale it is usually an initial $1,000 or so with the offer and the balance can be after inspections, or Bank approval. All depends on how the offer is written. Obviously as a buyer you want to put down the least and as a seller representative you want the most to hold the transaction together.

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.
0 votes Thank Flag Link Fri Dec 9, 2011
It depends of the terms of the contract. Florida Realtors Contract revised in 2010 gives the following choices:
- accompanies the offer
- upon acceptance (Effective Date)
- to be made within x days (usually 3 days after Effective Date)\
0 votes Thank Flag Link Thu Dec 8, 2011
You or your Agent should call the Escrow Officer and ask her; she's the one who knows.

Good luck and may God bless
0 votes Thank Flag Link Thu Dec 8, 2011
Hi Teresap,

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!

-Akop
Web Reference: http://www.vchousehunt.com
0 votes Thank Flag Link Thu Dec 8, 2011
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