Profile picture for jameskim80

hi i have questions about shot sale houses..

hi I'm First home buyer and I'm 27 years old(married) 
I'm thinking to purchase short sale condo(townhouse)
they listed that short sale condo for 110k but i offered 90k
I'm thinking to pay CASH (NO LOAN)

here is my questions.

1. my real estate agent told me I can't use my personal checks if they accept my offer.
    he said i have to get Bank Cashiers check only. can you guys tell me Why Do i have     to use Casher's checks only?
    Why No personal checks even I showed them my bank statements?

2. Who needs to pay Closing Fees? Seller? or Buyer? or Both of us?

3. If you buy home with cash what kind of benefits do i get end of year?
    (when i do tax return, is there has any benefits?)

4. Since i'm paying off house, how can i get title for house? where do i have to go?
    how long it will be take to get title?

5. if i get accepted, How long does it takes do with paper works ? when can i move in?

6. If seller is scammer.. can i still cancel $90.000(90k) Bank Casher's check?

* question #1 is very important to me. I want to use personal check when i buy home
  CAN I USE PERSONAL CHECK.. NOT CASHER"S CHECK?

Please help me
thank you
  • November 06 2013 - Northeast Tacoma
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Answers (16)

Hi James.

1) personal checks are never used, always certified funds, the check should be made out to the company who is listing the house for sale, they will be holding escrow. not sure why this is such a big deal for you as this is how all transactions work.

2) there are fees for both buyers and sellers but closing costs are more for the buyer. since your paying cash you won't have any mortgage fees. in a typical transaction the buyer & seller split the transfer tax but some short sales require the buyer to pay both sides, you may want to check on that.

3) since your paying cash you cannot write off your interest rate, you can only write off your real estate taxes

4) the listing agents title company will handle title search to make sure there are no liens and a clear title, you will sign paperwork at settlement to transfer. the buyer usually chooses the title company of their choice for settlement or since your using a realtor you can use their title co

5) there are no exact timelines for short sales to close but be very patient as they usually take awhile. Even after the offer is accepted it could take a few months. there are many things that factor into this so discuss with your agent

6) you should never make any check out to the seller, escrow should be held by the listing office


  • November 07 2013
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Personal checks bounce, so - no personal checks.

You will be asked to bring that cashier's check to the escrow office a couple of days before closing.

The bank will likely share the cost of the escrow office with you. You will take title by receiving a deed from the bank.

If the seller is a scammer, the escrow office will return your check to you.

For tax help, talk to a CPA.

All the best,
  • November 07 2013
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Profile picture for wetdawgs
You should be asking these questions of your agent.

There is a lot of paperwork that must be completed when purchasing a property (even with cash). It isn't simply a matter of money exchanging hands.  
  • November 07 2013
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Profile picture for jameskim80
can i just give my cashiers check to direct to the short sale bank?  OR I can't?

when do i give to cashiers check to real estate agent or bank..?

 
  • November 07 2013
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Profile picture for daveskow
work the closing throught your real estate agent then .....if they are not able to  be the settelement company ....get one involved
  • November 07 2013
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Profile picture for jameskim80
i just hired real estate agent only..
  • November 07 2013
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Profile picture for daveskow
Are you not using a settlement agent ?  ( in Washington this is commonly referred to as a escrow firm )?
if not - you should be  using one  ( as more than one post below suggests )
  • November 07 2013
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Profile picture for jameskim80
i DO Not give the cashiers check to the real estate agent?

then ... who ? do  i have to give my cashiers check to short sale bank? or seller?
  • November 07 2013
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Profile picture for wetdawgs
You do not give the cashier's check to the real estate agent. 
  • November 07 2013
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Profile picture for daveskow
1) IF YOU USE AN ESCROW FIRM ( CLOSING AGENT ) - you provide the check to the escrow agent ...( not the real estate agent )

2) what do you mean when you ask "when we do closing taxes."??
  • November 07 2013
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Profile picture for jameskim80
@ one more questions..

who do i give to my casher's check when we do closing taxes..

do i have to give my cashiers check $90k to Real estate Agent? 

please help 

thank you
  • November 07 2013
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Cashier's check is just that "CASH" I suggest using a reputabble titlle agency to settle any fears you may have. Your contract if drawn up correctly with dates also protects you during the purchase process.
  • November 07 2013
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Profile picture for daveskow
Why is using a personal check so important ? Is it because you want to able to put a stop payment on it if anything goes wrong ? Using a reputable closing agent( escrow ) as the middle man will alleviate much of your concern
  • November 07 2013
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Profile picture for craigfial
First off. NEVER send any money to anyone until you are sitting at the closing table, and a title committment has been issued.  Once the title committment is issued, your money is somewhat insured.

Make sure your offer has a small Good Faith Deposit ($1,000 or less) and possibly an additional 10% of the contract price upon written bank approval of the short sale.

The title company will require a wire transfer to their escrow account, or in some cases accept a Certified Bank Check.  Personal checks are never acceptable due to fraud and even some title companies will not accept cashiers checks because they can be forged.

When you make an offer on a Short-Sale property, you should know what the value is and bid slightly less, to allow for some flexibility during the bank negotiations.  It's VERY rare for someone to pay the contract price for a short-sale since there are so many issues to be resolved.  Taxes, Minicipal Liens, Bank Liens, HOA Liens, etc..

The Seller should provide clear and marketable title with an owners policy along with the deed at closing.  Those should be the sellers expenses along with prorated taxes etc...

If you are purchasing without a loan, your closing costs should be very low.  Less than $1k. 

There are no tax benefits to purchasing with cash. 

Make sure you have a good title company handling the transaction and you may wantto have an attorney review your closing package to make sure there are no issues that might come up in the future.
  • November 07 2013
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Profile picture for jameskim80
you said most buyers do wire funds electronically..

then do i have to give my agent to my bank information?

like bank account number and route numbers?

so that they can transfer my money?

isn't that more danger..?

how does wire funds electronically works?

can you explain to me please.

thank you

I'm sorry.. I'm young and its my first time  buying home 
  • November 07 2013
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Hi James,

See my answers in bold after each question:

1. my real estate agent told me I can't use my personal checks if they accept my offer.
    he said i have to get Bank Cashiers check only. can you guys tell me Why Do i have     to use Casher's checks only?
    Why No personal checks even I showed them my bank statements?
There's really no way around this.  A cashier's check basically guarantees the funds.  Anyone can write a personal check for any amount.  Essentially, a cashier's check is proof of funds.  In today's world, most buyer's wire funds electronically. 

2. Who needs to pay Closing Fees? Seller? or Buyer? or Both of us?
Everything is negotiable.  Here in Southern California, escrow fees are split by the buyer and seller.  Unfortunately, in a short sale situation, the bank is already taking a big loss, so a lot of fees are passed on to the buyer.

3. If you buy home with cash what kind of benefits do i get end of year?
    (when i do tax return, is there has any benefits?)
No difference to the gov't.  Money is money.

4. Since i'm paying off house, how can i get title for house? where do i have to go?
    how long it will be take to get title?
The bank will provide this.  Also, of course, upon recording with the county will come proof of ownership.

5. if i get accepted, How long does it takes do with paper works ? when can i move in?
In today's market, expect a 4-6 month escrow on a short sale.  It used to be longer.
6. If seller is scammer.. can i still cancel $90.000(90k) Bank Casher's check?
Not really sure how this could happen.  All your realtor has to do is check the public record.  Further, this is what escrow is for.  They're a neutral 3rd party. 
  • November 07 2013
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