Earnest Money in a shortsale

[ybitz]

What typically happens in terms of earnest money in a shortsale? Are you suppose to give the earnest money after offer acceptance but before bank approval? Or only after bank approval? I’d be a bit nervous to have money sit in escrow for 6+ months (or however long shortsales take these days). Is it hard to get your earnest money back from a shortsale offer, if months down the road you decide to walk away from the deal?

[LA Reader]

In my case I didn’t have to actually put the earnest money down until Escrow opened which only happens after the Bank(s) accept the short sale. So No, you don’t have to give them that money.

[LA Reader]

In my case I didn’t have to actually put the earnest money down until Escrow opened which only happens after the Bank(s) accept the short sale. So No, you don’t have to give them that money.

[LA Reader]

In my case I didn’t have to actually put the earnest money down until Escrow opened which only happens after the Bank(s) accept the short sale. So No, you don’t have to give them that money.

[LA Reader]

In my case I didn’t have to actually put the earnest money down until Escrow opened which only happens after the Bank(s) accept the short sale. So No, you don’t have to give them that money.

[LA Reader]

In my case I didn’t have to actually put the earnest money down until Escrow opened which only happens after the Bank(s) accept the short sale. So No, you don’t have to give them that money.

[SD Realtor]

yb –

They vary. In many cases you are not required to put money down until after the bank approves and you actually open escrow. In a highly competitive situation I advised my client to actually deliver the deposit check and open escrow. Not sure how much it helped but the offer was accepted over other offers. In either case it doesn’t matter because you can back out and get your deposit back. I have seen a case or two where some listing agents try to have buyers sign documentation forfeiting some of the deposit if they walk away while approval is being done. I would not advise to sign that.

Anyways no it is not hard to get earnest money back in ANY case as long as you did not remove your contingencies and/or are not past the contingency removal date nor have you signed anything stupid. Your agent should be able to advise you on the do’s and don’ts but in essence you are good to go and in the majority of short sales you don’t submit a deposit. Each transaction is unique though.

[SD Realtor]

yb –

They vary. In many cases you are not required to put money down until after the bank approves and you actually open escrow. In a highly competitive situation I advised my client to actually deliver the deposit check and open escrow. Not sure how much it helped but the offer was accepted over other offers. In either case it doesn’t matter because you can back out and get your deposit back. I have seen a case or two where some listing agents try to have buyers sign documentation forfeiting some of the deposit if they walk away while approval is being done. I would not advise to sign that.

Anyways no it is not hard to get earnest money back in ANY case as long as you did not remove your contingencies and/or are not past the contingency removal date nor have you signed anything stupid. Your agent should be able to advise you on the do’s and don’ts but in essence you are good to go and in the majority of short sales you don’t submit a deposit. Each transaction is unique though.

[SD Realtor]

yb –

They vary. In many cases you are not required to put money down until after the bank approves and you actually open escrow. In a highly competitive situation I advised my client to actually deliver the deposit check and open escrow. Not sure how much it helped but the offer was accepted over other offers. In either case it doesn’t matter because you can back out and get your deposit back. I have seen a case or two where some listing agents try to have buyers sign documentation forfeiting some of the deposit if they walk away while approval is being done. I would not advise to sign that.

Anyways no it is not hard to get earnest money back in ANY case as long as you did not remove your contingencies and/or are not past the contingency removal date nor have you signed anything stupid. Your agent should be able to advise you on the do’s and don’ts but in essence you are good to go and in the majority of short sales you don’t submit a deposit. Each transaction is unique though.

[SD Realtor]

yb –

They vary. In many cases you are not required to put money down until after the bank approves and you actually open escrow. In a highly competitive situation I advised my client to actually deliver the deposit check and open escrow. Not sure how much it helped but the offer was accepted over other offers. In either case it doesn’t matter because you can back out and get your deposit back. I have seen a case or two where some listing agents try to have buyers sign documentation forfeiting some of the deposit if they walk away while approval is being done. I would not advise to sign that.

Anyways no it is not hard to get earnest money back in ANY case as long as you did not remove your contingencies and/or are not past the contingency removal date nor have you signed anything stupid. Your agent should be able to advise you on the do’s and don’ts but in essence you are good to go and in the majority of short sales you don’t submit a deposit. Each transaction is unique though.

[SD Realtor]

yb –

They vary. In many cases you are not required to put money down until after the bank approves and you actually open escrow. In a highly competitive situation I advised my client to actually deliver the deposit check and open escrow. Not sure how much it helped but the offer was accepted over other offers. In either case it doesn’t matter because you can back out and get your deposit back. I have seen a case or two where some listing agents try to have buyers sign documentation forfeiting some of the deposit if they walk away while approval is being done. I would not advise to sign that.

Anyways no it is not hard to get earnest money back in ANY case as long as you did not remove your contingencies and/or are not past the contingency removal date nor have you signed anything stupid. Your agent should be able to advise you on the do’s and don’ts but in essence you are good to go and in the majority of short sales you don’t submit a deposit. Each transaction is unique though.

[Author]

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