Escrow

[Steve Lohbeck]

I am so confuse how escrow works. somebody explain it. and can i get the money from the lender for the whole deal. the deal is i talked to the lender he said he can loan me $50,000 for the house the owner is accepting best offer of $28,000 but now the lender is backing out of the deal??????

[Edward Burns]

Originally posted by Steve Lohbeck:

I am so confuse how escrow works. somebody explain it. and can i get the money from the lender for the whole deal. the deal is i talked to the lender he said he can loan me $50,000 for the house the owner is accepting best offer of $28,000 but now the lender is backing out of the deal??????

For an explanation on what an escrow is and how it works see: http://www.realestateabc.com/homeguide/Escrow.htm

As far as the lender goes, first it would be rare in today's market place to get any bank to finance a deal 100%.

In addition, while the bank might have willing (and maybe would still be willing) to lend you $50K on a house, the profit they can make on a $28K make not be sufficient to cover their cost and provide them a profit, so they are refusing loan it.