Hi guys i have a question about Ernest money? My realtor send me MLS listings for distress properties some are active others are reo properties. So i wanna make offers but i'm not sure if for every offer i put in i need Ernest money also i know i need POF letter, but my main concern is that i don't know how the E.M works. so if i get a offer accepted does the E.M Check get cashed or ??? please help
Do not send EM with every offer. Send a copy of the check in the amount of the EMD.
My investors use the same copy of the same check for most offers. Then we send a check in certified funds once we have an executable contract (signed by both parties).
To answer your second question. Yes once the offer has been accepted and contract signed. The EMD is then deposited into a non-interest bearing escrow account.
Hope this helps, if you have more questions feel free to message me.
Earnest money deposits are sent to the title company after the contract is accepted.
who sets the E.M amount if it's a reo or just a active listing on the mls?
Buyer sets the amount initially but seller can counter and ask for more.
what is a recommended E.M amount to send with the offer? I was advice $250 per offer
We try to do 500.00 however some require as much as 10% down. It is a negotiable item...keep in mind, if you don't fulfill the contract you may lose it. As with all investing research as much as you can upfront.