Earnest Money Requirements for HUD Foreclosure Homes

If you are planning on making a bid on a HUD home you need to know the earnest money reqiurements for HUD Foreclosure Homes.

HUD requires all bids on HUD foreclosure homes during the Exclusive or Extended Listing Periods be backed by earnest money in the form of certified funds (Cashiers Check, Official Bank Check, or Money Order only).

The earnest money check was in the past held by the Buyer's Agent broker but that has been changed. The earnest money deposit is now sent to the assigned Management and Marketing contractor for the property. It has to be sent with the Sales Contract within 48 hours of the acceptance of the bid by HUD.

Required Earnest Money For HUD Foreclosure Homes

The amount of the earnest money required is determined by the initial list price of the property.

If the initial list price of the property is greater than $50,000 than the earnest money required is $1,000. If the initial list price is $50,000 or less than the earnest required is $500.

50% of the Listing Price for Vacant Lots.

You also may want to review Earnest Money Return Policy For HUD Foreclosure Properties .

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