Home : Blogs : Rosemary Brooks -Mother & Daughter (866)-750-8282 : Mother & Daughter Blog

Bank Owned / REO & Earnest Money ~ new twist!

Dear Listing agents:

Can one of you please explain to me why it is necessary to have the buyer bring the earnest money deposit to you PRIOR to placing the offer? Is this a way to tie up the buyer's money, with a strong probility that their offer will not be accepted by the seller in the first place and this can delay them from being able to accept another offer and have their earnest money handy to send in to escrow and get the transaction moving on something their offer was accepted???

And will this catch on with Short Sales later on?

Is this fair to buyers that don't even know if their offer is going to be accepted?

Please advise.

Signed concerned agent.

↑ Grab this Headline Animator

CHECK OUR WEBSITE: http://www.motheranddaughterrealtyteam.com

Rosemary Brooks

Patrick Williams & Associates

Mother and Daughter Realty Team

PH: 866-543-0461

FAX: 866-815-1649

EMAIL: info@motheranddaughterrealtyteam.net

WEBSITE: www.motheranddaughterrealtyteam.com

Posted by Rosemary Brooks -Mother & Daughter (866)-750-8282 on 11/06/2009 01:02 PM

Comments (8)

REOs and Earnest Money Deposits in the ActiveRain Channel

short sale, bank owned properties, reo, rosemary brooks

Originally posted at: Mother & Daughter Blog: Bank Owned / REO & Earnest Money ~ new twist!

This post has been included in California Information San Joaquin County, CA Information
Post is included in group: "Whacked"!!!
Post is included in group: REO REALTORS
Post is included in group: REO
Post is included in group: First Time Homebuyer
Post is included in group: 1st Time Buyers

8 Comments on Bank Owned / REO & Earnest Money ~ new twist!

NOV

This is a first for me...

I dont deposit the buyers EMD until after i have a ratified contract between the parties. I send a copy of the cashiers check/money order.

John, I know. I have ran into several listings with that comment in agent confidential remarks. I didn't know it was legal.

Robert, this is how I do it too. My buyers have had to ignore a few listings because of this requirement! No one wants to tie up their money on something they may not get!

On the otherside I have an open escrow for about 30 days where the buyer never deposited their earnest money to escrow. Now we have to cancel escrow when it should of never been opened. Maybe a comprimise would be the solution.

NOV

Julie - I make a note to myself to check on the deposit and if it is not there -- advise that selling agent that we are out of contract. That usually works and we either get that deposit or we move to get it cancelled and move on

NOV

Hi Rosemary,

Maybe this "requirement" is coming from the listing agent and not the lender? I don't do this on my listings(REO) and none of the companies I've worked for require it. Maybe the agent was burned before and this is how he is trying to protect himself.

I generally get an offer and submit it to the lender with a copy of the EMD and at this stage it is usually a personal check. The first counter always clarifies that EMD will be in escrow within three days and it will be cash or cashier's check.

NOV

Rudy - exactly! This is why I was a bit surprised to see those kind of instructions on the listing. Didn't know you could do it like that! And why???

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?