Earnest Money

[Mike Gifford]

REO's if you have submitted a POF Letter, why do thay ask for earnest money. I don't understand it. There getting the full amount, when we close. Help me understand.

[Nat C.]

In this world, a persons word is worthless. If you say you want to buy the property and show you have the money, that doesn't mean a darn thing. Money means business. When you layby a product at a shop, do they take it off the shelf and trust you'll come back to pay for it later? No, they require a deposit. If you order a wedding cake, do they ask to see your bank balance to ensure you can pay or do they require an upfront deposit?