HomEq & Saxon Work Together
I could not believe it, but late Friday I got a call from HomEq on a deal I had been working with a Saxon 2nd (with no luck) saying that HomEq had been having tons of properties going into foreclosure because Saxon would not work with them. She said that the VP of each bank sat down and hammered out a deal where Saxon has now approved all these deals. So HomEq did the negotiating for me and got the approval from Saxon so we can move forward.
First time I have heard of cooperation between banks.....usually they dont even cooperate between departments!!!
thanks!
Yes, i have included some clause for earnest money in the offer. But this is short sale and lender has not approved the offer yet. If I need to back off from the offer (reason could be short sale is taking too long "or" may be I have found some other property); is this money at risk?
Not if the offer included an expiration date which has passed, as it should have. Or some other clause that you can cite as the reason for voiding the contract.
Chris
A standard DROA (at least in the states I have purchased in) states that an earnest money deposit can only be disbursed with the approval of both parties or with a court judgement.
I suppose you could ask WAMU to void the offer and release the funds, but I suspect a judge would assume substantial effort will be going into review of the offer even before acceptance and that the purpose of the earnest money is to reimburse that effort if the offer has not been made in good faith. Thus, unless WAMU releases you from the offer, I believe you will need to use some contingency in the contract to demand the release of the earnest money.
If your agent is worth a cent, an expiration date was included in the offer which will never be met in a short sale situation. This is your out.
Chris
scenario - II
copy of the deposit check is sent to the lender but no check is sent to the Title company yet. Lender "or" seller agent can hold the deposit if for some reason buyer backs off from the offer??
The check is pay to the order of the escrow/title company.
If some agent sits on your check, you have no risk.
Quote:
On 2008-07-25 10:01, ypochris wrote:
A standard DROA (at least in the states I have purchased in) states that an earnest money deposit can only be disbursed with the approval of both parties or with a court judgement.Chris,
The standard language you reference binds both parties to the contract. However, since the seller has not signed anything yet, there is no contract and the language is not binding on anyone.
If the seller rejects the offer, earnest money is automatically refunded to the buyer. Until the seller accepts the offer and there is a contract, the buyer is free to withdraw his offer and earnest money is automatically refunded to the buyer.
Just how I see it.