i recently found a home that i liked and i put in an offer, i also requested that the seller pay my closing cost. the seller then accepted my offer. i then wrote a check for $4,000 for good faith. this check was deposited into an escrow account. what is the good faith money used for? and if there is a balance left over, who will get it?
2007-01-22 13:50:50 · 2 answers · asked by shun t 5 in Business & Finance ➔ Renting & Real Estate
This good faith/earnest money deposit is your showing that you've agreed upon a purchase/sale of the property and have opened the escrow process. This money will be applied toward the purchase price, and will be reflected on your HUD1 form, that you will receive from escrow; earmarking all of your costs and credits applied.
You should have already received an estimate of your costs, with a reflection of the earnest deposit of 4k. There will not be a balance left over of the 4k, as it is applied as described above.
2007-01-22 14:00:34 · answer #1 · answered by ☼High☼Voltage☼Blonde☼ 4 · 1⤊ 0⤋
The escrow money is kept until closing at which time it goes toward your down payment and/or your closing costs. If the terms of your loan and the seller's contribution are in excess of what is needed to close the title company or attorney will cut you a check at the same time the seller receives his or her proceeds of the sale.
Hopefully you are dealing with a reliable title company and not the owner of the property for holding escrow.
2007-01-22 13:59:28 · answer #2 · answered by Othniel 6 · 0⤊ 2⤋