Bank is requiring a $2500 deposit on offers

[Aly W.]

I'm considering making an offer on a REO that was originally listed as a short sale 18 months ago for $260K. It's now at $185K. It would be a rental property, and given the formula for rentals and the repairs required, my offer would be approx. $60k. It's been on the MLS as a REO for 2 months with no offers.

The listing agent's notes say:

Sold as is. Buyer responsible for c/o and all inspections. NO stove or bathroom sink. Buyer must provide pre-approval with proof of funds for total downpayment or proof of funds for cash deal. *Buyer must exercise patience*. $2500 earnest money deposit required to be held by LA. Sellers addendum required.

I'm using a buyer's agent. I don't intend to put $2500 down or anything close to that if being "patient" will tie up that money for months. Can my agent refuse to submit the offer without the $2500, or can the listing agent refuse to submit it to the bank without it?

Thanks!

[Harrison Painter]

Tim,

No offense, but I find it a waste of time to slow a deal down over negotiating earnest money on a bank owned deal. The process is slow enough as it is, and the odds are stacked against you anyway. It stinks, but the banks are not forced to play by the same rules as we do. You do not need to submit earnest money until all the paperwork is singed anyway, so you will have a good idea what you are looking at by the time you cut the check.

Stephanie,

I am glad you brought that point up. These addendum need to be read thoroughly so that you understand them. Deed restrictions, automatic extensions, not adding in negotiated paid closing costs, ect.... They can bite you in the behind if not careful!

Good Luck!