I am about to make an offer on a house that is in foreclosure.I am making the offer to the banks seller agent and they gave me an offer letter and I have a few questions before signing it.


1. They want me to write a check for 3% about $5k made out to "escrow" and give them a copy.I am afraid they might cash the check before the money goes to escrow. Is it safe to give them a copy of the check? Becuase I know companies who just have copies of checks and they can actually cash the check.

2. Is there anything in the offer letter that I should look out for?

3. After I make an offer letter what is next, the bank agrees or deny? If they agree do they send me a letter to sign so that I accept the agreement and than it goes to escrow? (And once in escrow they take my 3% downpayment that is listed on the offer letter + the other 17% on the loan? When do they take the 3% that is on the offer letter?

4.If I want to make 10 offer letters am I going to lose 10 deposit?

If you had your own agent, these questions would be answered for you.

Its not uncommen to present a copy of an escrow check with the offer. In you letter simply state "Escrow deposited upon acceptance of offer".

Once they accept you will get a huge packet of paperwork to sign. Likely a 20-30 page contract. Remember, the selling agent works for the bank.

You have to read (or have an attorney) the contract to answer the other questions.

Just a point to ponder, banks that are selling foreclosed properties usually want the initial offer written on a standard contract used in that state and will not even look at things like Intent to Purchase letters.

Is the person that you are dealing with licensed to sell real estate or a salaried employee of a bank? People with those credentials know how to handle the paperwork.

Agree--this is one benefit of having your own agent. They'll know the answers to your questions, and write up the offer in a manner that will best protect your money.

If the offer is submitted on the standard CA Residential Purchase Agreement form, it will state exactly what is to happen with the escrow check. You do have several different options to choose from--and it is YOUR offer, so you can instruct the agent to do with it what you prefer.

USUALLY the contract specifies that the check will be held uncashed until acceptance.

I, for one, will never accept a check when I write an offer for a buyer (simply because I choose not to maintain a trust account and deal with all the paperwork that accompanies it). I always stipulate in the contract that funds are to be wired directly to escrow.

Perhaps having a buyer's agent will be your best approach. Keep in mind that the listing agent has a fiduciary duty to the seller to sell the property in the best terms/conditions possible (in favor of the seller). Best of luck.

It appears that you do not have much experience with real estate transactions, so you really need to have a good buyer's agent working for you. The seller pays the commission, so the buyer's agent works for you for free.

You should only deliver a check to escrow after your offer is accepted.