Banks Asking For Down Payment

[Rodney Ford]

Has anyone had to give a down payment when submitting your offer on a REO? an agent told me banks are requesting down payments.

Thanks,

[Christian Malesic]

Banks are requesting 10% of offer as an Earnest Deposit. You can put more, you can put less. Consider this one of the terms of the deal. Look at the whole package.

Here's another way of looking at it:

I will pay anyone here $1 Million if they agree to do a task for me. Any takers?

Not enough info, right? What if I tell you the task is to take my trash can down to the curb while I am away next week - great deal!

How about if the task is to rebuild all of the NY City sewers in a 6 month period - terrible deal!

The point of this exercise is - look at all of the terms of your offer.

If you are planning to offer asking price, or even above, then give low Earnest Deposit. On the other hand if you are looking to really slice the asking price to bits with your offer, up your Earnest Deposit and make sure your other terms are favorable to the bank.