I have been doing Short Sales for some time now, closed several successfully with a track record of 3 months upon taking a short sale listing, to close date. It has always been pushed in the head that you should never open an escrow until you have bank approval of the SS, so I had followed this until 1 day a listing agent pushed an opening. Several months passed and the bank ended up foreclosing. The escrow kept $175.00 of the EMD, we fought hard to get all back, but failed. CAR Attorney told me that I should have stuck with NO on opening (although seller accepted, technically you really don't have an accepted offer as it is Ultimately up to the bank to approve, all is subject to bank approval) plus yes the escrow is entitled to their expenses as it is in the CAR form Purchase Agreement. Hoped we could have found some legal loop to get all the EMD back, but :(. So me and my partner paid the amount as we felt awful that this happened. We called the listing agents broker, yes she was highly upset that the agent pushed us in escrow (although we could have said no and walked, but buyer's wanted home and we were told if we didn't want to open, then they don't get the home), so against better judgment it opened and EMD deposited per request of the Escrow Co. Since then, I have stuck to no way on opening an escrow, may I have a buyer or seller. I have been yelled at by other agents, I have been told I had no clue what I was doing, I have been told this is pathetic, I have been told that their lender needs to get started on the process, I have been told that the client (of the other agent) is going to withdraw if I don't allow escrow to open... I have always referred others to contact the CAR Attorneys to include Calbre and speak with the investigation department. I have an awesome escrow gal who provides a Preliminary Title Report and she provides me with GFE (without opening)... Just so that I can start kicking hiney with requests of the banks/negotiators plus send Prelim to the other side. But these agents who literally say what they do? Even a person who is a Broker, recently, said how they inform their agents to open escrows before approvals... I only asked that he contact the attorneys and the response I get is they don't know what they are talking about... What do I do, what do I say? I thought I prided myself in the way I have been doing short sales, the team work involved by everyone has truly kept me sane. I love working with my clients and the banks, we work awesome together and the negotiators have been awesome when I have sent message regarding impatient transactions, they help the breathing as the words I hear is we will get this done and you will be able to open escrow once we get approval... Sorry if I sound whiney or like a downer. I know there are majorly experienced Agents/Brokers on Short Sale Super Star. Am I wrong? Any suggestions out there? I so would greatly appreciate very much, even if it is a negative feed back. Thank you so very much for your time. I am in California. Thank you again.

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I don't like having escrow opened prior to a short sale approval being issued. It's pointless IMO and as you mentioned, it could cause unforeseen problems or delays in regards to buyers funds.

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Thank you Brett :). I thought maybe I lost my touch with short sales, especially when it was a broker that said he what he did. I do appreciate your response. Hope your weekend is going wonderful :). Thank you again.

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