Fannie Mae REO – Inspection and Earnest money deposit

[Amy M.]

I am working to get a first Fannie Mae REO property and all the terms were agreed by both parties via emails today. A ten day inspection was allowed and we were told to wait for further instructions, without having the signed contract back.

Also we were instructed to wire the earnest deposit to our broker’s bank account for them to hold until they open an escrow.

Does this sound typical for REO purchases? I don't like the idea of wiring EMD without a signed contract or some kind of documentation stating it. Having inspection done without the signed contract seems ok, but I was not sure about wiring the deposit to our broker.

Amy