Hello. I have a few questions if you guys can help me out please~
Thank you all!! =)
Earnest Money for a Short Sale? No way. If the lenders want me to put any money in escrow I require that they accept the short sale. I have no problem putting money down on a deal that I will be closing, but without a payoff acceptance letter from the bank there’s no way. I just don’t feel comfortable putting up any money toward a property that has no negotiated sales price.
At the end of the day these loss mitigation reps are the same bill collectors calling the homeowner. Their job is to collect on that debt. I’d rather not take any chances.
GooD Luck! :beer
Sign a promissory note for the amount of Earnest money.
I offer 2k on all properties that I acquire and have used that same 2k for 11 years.
Earnest money is a deposit. You don’t give it to a seller in a short sale. An earnest money deposit is generally given to an escrow company after contract acceptance. The normal amount of a deposit is 1% of the sales price. E-mail me the contract and I’ll take a look at it.
On my last short sale offer, I gave the listing agent a check for $100 to be held in escrow as my earnest money. If the lender does not accept my offer and if I don’t want to make another offer, the listing agent gives me back my check.
It is really common for the Listing agent to hold that cash in there escrow account. Anything can be asked for in the Contract, That being said I guess I didn’t really tell them who held the money. On the other hand I guess they never asked.
I usually do a 1500 refundable earnest money deposit with the contract. refundable should a short sale approval not occur. I do this to show the lender I am serious about my offer. As long as you indicate it is refundable, I see nothing wrong with doing it. ???
I always provide $10 in earnest $ in a SS contract. I also submit a proof of funds letter to the bank with all of my SS packages.