NOT SO FAST: Send a copy of the Earnest Money check with the contract

It would never we wise to include your social security # flat out in the open. There is a foreclosure website that requires you to include that for offer tracking purposes (HUD?).  I don't even like doing that.  There are plenty of other ways to distinguish your client without asking for that. 

I have seen the same information on pre-approval letters. I'm on the phone pronto with the lender stating the buyers financial accounts, stocks, 401 K, savings,checking. everything. I just need the letter. Proof of funds ok but black out the account numbers.  Can't tell you how many lenders from financial institutions I've had to inform what they have done. We like to know we are working with honest colleagues but all it takes is a couple checks sitting on a desk and someone walk in with a phone with a good camera like mine. Don't even have to move the check just snap photo done with someone's money accounts.

Sounds like just another headache.  I understand why though.  I think the deposit check is not as important as the Proof of Funds.

Thank you Liz...Very useful information to share. We have that as a policy in our office. Also when sending a P&S to an appraiser, please black out the SS numbers.

Liz, great information!  We can never be too careful dealing with our client's personal info.

Hi Liz, I think this is a very prudent practice and think it should become the Standard of Practice for everyone in the industry when delivering proof of the Eanest Money Check. Excellent!

Here in MD every contract I've ever received or written has included a copy of the EMD.  I don't think there is much point in lacking out the routing number because if you know what bank it is drawn on you can easily find that info online in under 30 seconds.  Our contract includes the buyer's address so lacking that out on the check would be pretty pointless as well.  I could see a case for blacking out the account #.  Everything with sensitive info goes in the shred-it which is shreded on-site.

Here in CT we usually send the copy of the check with the offer.. I don't think there is much danger in sharing that.   Nice post - makes us think!

Hi Liz,

Great advice! I also black out all but the last 4 digits of the account numbers on checks and bank statements, just to be safe.

Hope you're having a great week!

Gina

Yes, it's good to be careful. But every time you write a check and hand it to a cashier or send it through the mail, you're taking the same chance. 

It is really a shame that identity theft has become such a problem. You can never be too cautious with a client's personal information.

Thanks for the heads up! I had not thought of this, but you are absolutely correct.

Liz, thank you for the important tip!  Identity theft is everywhere!

I get Buyers to send ME a copy of the check if they are out of town/state/country. But I don't send a copy to anyone else.

And yet, everytime we write a check and give it to a clerk at a store or mail a check as payment for something, all of that precious information is in the hands of strangers. 

Thanks, that is great advice!  I have worked with a few buyers that will not write a check at all until the offer has been approved.  He said proof of funds should be sufficient enough.

I think the practice of tendering a copy of a deposit check is quaint and ought to go away. It says on the contract that the buyer has written a deposit check. I do not need to see a meaningless photocopy of that check.

That is a good point. I like to use promissory notes and just tell everyone when it is redeemed.