I have a REO listing with a contract for cash submitted with a deposit upon acceptance. My rep told me the contract was approved last Friday and I should get the contract by this Friday or Monday, but wants a copy of the escrow check. The buyer’s agent wants a copy of the executed contract before giving me the proof of deposits.
I sort of agree with the buyers agent, as until the contract is returned sign we really do not have a deal, but of course what is the harm of providing proof of funds.
Thoughts?

Your post has me confused. A deposit check (earnest money) is typically tendered to the Buyer's agent when the offer is made and a copy of the check is submitted with the offer. When an offer is accepted, then the deposit check is turned over to whoever is handling escrow (at least in California) by the Buyer's agent. In the purchase agreement, proof of funds (be it a full cash offer or a financed transaction) is delinieated in the purchase agreement as to when the proof of funds will be provided. This is done (providing the proof) after the offer has been accepted.

So...are you wondering about getting proof of funds to close the deal or are you asking for proof of the deposit?

The contact states the deposit will made upon exceptance. My rep states the contract is excepted, but the buyers agent want written proof (ie the signed contact), but the bank will not provide the executed contract with out proof of the seceutity deposit.

CanDo - in Florida we do a lot of escrow ‘upon acceptance’


dougsul -tell your buyer to cough up the check unless he wants to squirrel the deal …

Here, the earnest money check is tendered along with the offer, most lenders require a copy of the check, along with the offer. The check is not put into the trust account until all parties have signed the final agreement.

Where I come from the deposit check is submitted to the buyers agent when they write the contract. It is not deposited until acceptance. A copy of the check though (along with the POF) is submitted with the offer though.

I don't see the problem - Get the escrow check and proof of funds from the buyer's agent, and let them know that until you receive them all offers will be considered.

Did your AM state the deal was accepted as is, or that it will be accepted once he gets what he asked you to get? If it is the second - then you have no accepted deal until that is accomplished, and you need to let the BA know that.

Florida - Land of the thinking and working out of the box - for sure.

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The bank has spoken..........LOL The buyers agent needs to do what is asked or move on to the next deal...simple. jm2cents

Actually that is the way it is; It really does not matter about how things are done "where I come from" (via my last comment).

All you can do is tell the buyers agent to provide what your client needs, or no deal.

Its different in every state, in California, read what CANDO wrote above, however, when purchasing these REO's, the Seller(Bank) wants to see a DIRECT LENDER APPROVAL LETTER, or an approved letter from their own bank representative, if it's all cash, they want document proof, which is easy to do, just get a copy of an account the Buyer has and cross out the account numbers for any of their accounts that has enough to cover the entire amount of purchase. Typically, we have 3 days after acceptance of a fully executed contract to get the initial deposit into Escrow, any more days than that, we don't have a legal contract, everyone usually overlooks this little clause, however, if a bank wanted to be a stickler, they could enforce it. The Sellers of these REO's are now starting to deal with a weak negotiating position. I have a deal now whereas they are actually fixing every repair we asked for, which in the past was non-existent. I guess it's because not too many people can qualify for loans.

In Washington if you send a check to escrow before they have the contract, they can only legally hold it for 24 hours before having to return it for not having a fully exected contract. I always tell buyers agent to submit copy of Cashier's check, and not to send to escrow until we have mutual acceptance in writing. The AM's dont like it sometimes, but they have to follow the rules in the state, no matter what parties agree to, no contract trumps state law, that is the first thing I learned in real estate....

I don't understand why the buyer's agent won't provide you with a copy of the deposit or proof of funds. Without those two items, offers are not even submitted to the Seller here. We've had many agents argue with us over it, but those are our instructions and they are enforced. All they end up doing is wasting time and sometimes even cost their clients the home.