I would generally recommend having a deposit in some form of good funds.

We also require initial payments to be made in good funds for rent and security deposit, which helps to solve a lot of the asset verification.

Many I've worked with don't even do a deposit.

What 'll I do is put in offer ($57k) $1k higher than the winning bid now and a large earnest deposit like $25-50% of purchase $25k or so with NO contingencies, except a lender approval contingency as Im still waiting for my hard money lender to sign off on it.

Like rent, security deposit, lawn care, snow removal... compare this information to the actual leases and what the seller says. 

Most of the time you will need a earnest money deposit, which can be anywhere from $1000 to $10,000 (I did that for my last cash offer).

My closing attorney wants to walk away from this Fannie Mae Foreclosure property, get my deposit back and forget it.

My question is does anyone think I should pursue the entire deposit via litigation? 

Typically the seller will provide a check for deposits plus interest and prorated rent collected at closing (separate from title company funds).

. $36.00 (36%) of that gets withheld by Airbnb and you get a net of $64.00 deposited into your US bank account.