Posted by Tim Fierro (Tacoma, WA) on March 07, 2002 at 23:12:03:

I have noticed that some of these REOs on the local MLS do have notices with some set earnest money required, and some even require pre-qualification letters. If they require it, they can set this. All you can do is send an offer in without it if you really want it and keep your fingers crossed it will be submitted. If these instructions for earnest money are valid, it won’t be shown to the client, per their instructions. If you have an agent getting you the information, have them get in writing that the REO in question does have this stipulation as part of their listing agreement.


Posted by Victor on March 07, 2002 at 20:39:55:


Im a new investor and i was concentrating on bank owned propertys in my area. I had a real estate agent i work with give me a list of bank owned propertys that are listed on the mls. I picked out the ones i was interested in and wanted to make an offer my agent told me that i had to send in a contract and at least thousand dollar deposit with that contract. Now im just starting out and i have very little money i was going to flip the deals i get but a thousand dollars for a deposit would be next to impossible for me to come up with right now. Do any pro’s now of a way I can get around the deposit issue. Any help will be greatly appreciated.


Re: CAN YOU GET AROUND DEPOSIT? - Posted by J. Clifton

Posted by J. Clifton on March 08, 2002 at 07:01:54:

If your contract (or addendum, or modification of the realtor’s contract) states that the deposit shall be submitted “upon acceptance” of offer terms, then the deposit isn’t needed upfront. And the deposit is to be held by the closing agent of your choice (say, your attorney or title company). Even if you had lots of cash, it makes no sense to have this much cash tied up when 1) most investor offers get turned down anyway, 2) most of your control is gone from the outset, if you can’t even submit the offer in a manner that protects your interests. Even with banks, control the deal.