Earnest Money Requirements 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). No later than seventy-two (72) hours following receipt of a signed sales contract on the purchase of HUD foreclosure properties, the Selling Broker may be required to deliver the funds to HUD's Closing Agent in accordance with local customs. Required Earnest Money: The Selling Broker will forward the Earnest Money to the Closing Agent after contract execution. Brokers in IL, IN, NC, SC, VA and WV will hold the money in their Trust Account.
Earnest money deposits for HUD foreclosure homes must be provided in one the following methods: Cashiers Check, Official Bank Check, or Money Order only with no termination date or cancellation provision, payable to both HUD and the buyer by utilizing the word "or" within it. For example, "HUD or Jane Doe". The exceptions are: Alaska: earnest money should be made payable to HUD's Closing Agent. North Carolina and South Carolina: earnest money should be made payable to HUD's Closing Agent or the Selling Broker Required Earnest Money Amount: $1,000 for offers greater than $50,000; (not to exceed $2000) $500 for offers $50,000 or less, 50% of the Listing Price for Vacant Lots.
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