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lender requires that we submit our offer to our real estate lawyer and not submit a good faith deposit right off the bat. The banks are “tight” when dealing with these types of transactions and our broker wants to protect us from losing our money since theirs no realtor involved.
How do we work this? Is there a way to negotiate with the seller so they know we are serious (pre approved) however have to follow the lenders rules to receive our mortgage? Any ideas on how to put this concern on the table?

3 Thoughts on We’ve been preapproved for a mortgage and found a home for sale by owner, if we choose to put in an offer, our?
  1. Reply
    ramkot
    July 17, 2011 at 5:43 am

    Discuss with sellers and work with your lender. All three can work out some writeen agreement that protects both buyer and seller.

  2. Reply
    kemperk
    July 17, 2011 at 6:11 am

    There is no realtor involved? Get a license involved. FIND a local
    licensed BUYER”S agent. IT is their job to represent the buyer
    and never the seller.

    and the seller pays for the agent IF the property is listed with
    MLS. [with % for the seller agent and buyer agent]

    in every state, every RE buyer is even encouraged to hire
    such an agent. I can find one for you if you like.

    Submitting a check as an ernest money deposit is 100% safe
    if you have ESCAPE clauses in the purchase contract

  3. Reply
    Expert Realtor
    July 17, 2011 at 7:05 am

    For Sale By Owner transactions are done all day, every day, by banks and are not treated much differently.

    Sweetie, your broker is filling your mind with a risk that doesn’t exist…there is nothing complicated by your transaction. While it is normal and customary to give the earnest money to the listing agent’s broker, there is NO RULE that says it has to be the listing agent….it can be YOUR agent’s broker…or the trust account of an attorney representing the seller.

    How the earnest money is handled from there is regulated by state law…it cannot be released without the consent of all parties involved REGARDLESS OF WHO holds the funds…trust accounts are legally protected….the only thing you would not do is give a person, an individual the earnest money because they don’t have a trust account.

    I find it odd, very, very odd, that your Realtor doesn’t know how to handle a FSBO transaction.

    Sounds like someone that is inexperienced to me. Very inexperienced.

    PS: If you do not have a licensed Realtor involved in the transaction…then a real estate attorney can do the same thing…Kempark is very incorrect. The only difference is that a real estate attorney isn’t going to help you negotiate a price, repairs, work you through inspections, etc.

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