In most real estate transactions earnest money is a cash payment that is offered to the sellers, but earnest money works a little bit differently with a Coatesville short sale. To begin, it is important to understand exactly how earnest money works. Sellers are responsible for setting the amount of earnest money that they would like in the sale of the home. There is not a set amount of money to put down with a Coatesville short sale, but you will often see sellers ask for a small percentage of the cost of the house up front.
Earnest money is put into escrow until the home’s closing is complete. The sellers do not hold on to the money. If the buyers choose to back out of the deal, the earnest money is awarded to the sellers. After that, earnest money can be used toward closing costs or other closing expenses. Sometimes buyers may choose to have earnest money returned to them, and that is a viable option in many contracts as well.
Earnest money is a great way to show that you are seriously interested in pursuing a Coatesville short sale. In a conventional real estate transaction earnest money is placed after the offer has been accepted by the sellers. A Coatesville short sale is different. With a Coatesville short sale the offer has not yet been accepted by the bank. While the sellers may have approved the offer the bank my still reject it and so buyers will not submit any amount of earnest money until the closing process begins.
If you decide to walk away from the Coatesville short sale, the money may or may not be awarded to you. If there is language in the contract that allows the return of earnest money, you will have to get a signed affidavit from the buyers and sellers that allow the release of earnest money from escrow.