It is very important to use a professional for Real Estate, we are trained in local laws and practices and know how to write agreement to protect you.
Depending on the language of the purchase agreement you should be able to get your deposit back.
Most purchase agreement have a mortgage contingency that gives you a certain amount of days to provide the seller with a mortgage denial and receive a full refund of your deposit. It is usually 30 days on a conventional loan.
In Michigan, We have strict laws regarding deposits. If you believe he is in the wrong, this could be sorted out in small claims court (again, in Michigan, it may be different where you are). But the first thing you need to do is have the lender send you an official denial letter, and send that to the seller, with proof of delivery ie. Fax, Email, Certified Mail along with a release of purchase agreement granting the EMD to you, the buyer. You can probably find this form online somewhere.
Real Estate One
$10,000,000 Sold in 2012
6960 Orchard Lake #150 West Bloomfield, MI 48322 | 248-419-3133 | 248-419-0930 fax... more
I work for B of A, and to add on to what Derek said, the reason we (and other ) banks are doing this is because there are still a lot of shady lenders out there and they want to make sure that if your lender fails to perform and deliver on a closing then they can step in to preserve the deal. If you are not approvable through B of A then they may consider your offer less qualified and elect to go with an offer that has less question marks... more
if you qualify for a bank loan w/ 10% down....i guarantee you that you will qualify for the fha loan.the problem with your deal...isn't you...it is the deferred maintenance on the home...also....did the listing agent offer it fha as one of the financing options?...there are two ways to legally get your emd back.....call me bob mcclure....mortgage now- farmington,michigan (248) 806-0366......best regards........ more