A lender asks you to remove the Earnest Money from a contract... what should you do? Lenders must source the earnest money & if it is cash or too difficult to source, the lender will ask you to write an Amendment removing the earnest money from the contract. What should you do? What are the risks for the Seller? Watch the video to find out! Dana Sparks, Qualifying Broker of Maximum One Greater Atlanta Realtors - www.MaximumOneATL.com
Hi Dana
Interesting video and issue. I have never had this happen nor heard of it happening here. And it would certainly raise some questions in my mind as the listing agent about the buyer if the lender says they can't source the funds!
Jeff
How can the seller withhold his signature until closing when underwriting is requiring it on an addendum as a condition of the loan Dana (Lerner) Sparks? I'm confused but it's an interesting point. I've not encountered this and will ask my loan officer colleagues for their procedures regarding cash deposits. BTW: Like your use of the YouTube medium for posting blogs.
In my 21 years as a broker this has never happened to me. And I've had a lot of cash EM over the years.
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