Tip 44-2013: REOs - Not All Deposits Are The Same

REO lenders of foreclosed properties have specific guidelines regarding earnest money deposits. For example, Freddie Mac requires the earnest money deposit to be in the form of a cashier's check written to the listing agent. The deposit can NOT be a bank check. On the other hand, while Fannie Mae also requires the listing agent to hold the deposit, the check can be a personal check.

One guideline seems to be the same across the various investors: the earnest money deposit needs to be available BEFORE the offer is sent for signatures.

As always, for any questions regarding a specific property, contact the listing agent who will know the rules for that particular REO's property.

 
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, VA
434-973-7474
www.TGBlaw.com