Upcoming Foreclosures

I am trying to buy a foreclosure and Fannie Mae is as king for a 10% earneast money, is that customary?

I am a bit concerned of giving so much money and if anything goes wrong, I could loose.

Public Comments

1. An earnest money deposit is normal. Ten percent is on the high side. Is your contract subject to financing and an inspection by a properly licensed home inspector? You might offer a smaller deposit now, but when your loan is approved and you accept the inspection report, you will increase the deposit. They just want to make sure you will close. realtor.sailor
2. Yes, an earnest money deposit is pretty standard. And, yes, you should be concerned. An earnest money deposit shows that you're serious about purchasing. If someone isn't serious--if someone doesn't intend on following through--then they shouldn't make an offer. Have a Realtor represent you. There will be some contingencies in the contract to protect you. Hope that helps.
3. Yes its normal but on my 116,000. dollar house I had to put down $500 and got it back at closing, but that was before all the economy crap that's going on, now I guess 10% isn't bad, they just want to make sure you aren't going to walk away for no reason. Now-a-days they want to make sure that you can make the payment and if you cant afford the earnest money then 9 times out of 10 you aren't going to be able to afford the payments.
4. Honest opinion? 10% is ridiculous! The standard amount of earnest money required on homes priced at or below $417K is about $1,000. I've seen higher amounts and I've seen lower amounts, but 10% is way too much.
5. we just purchased our home it was 113,000 and only had to have $500 earnest money, which we will receive back at closing this Thursday. Our realtor told us that earnest money can basically be whatever you choose, but usually its 1% I have never heard of a 10% earnest money. My dad just bought a house in ohio and gave his real easte agent 1 dollar for earnest money...