Financing in Miami>Question Details

Michael Hugo, Renter in 33181

How can we get our escrow money back faster?

Asked by Michael Hugo, 33181 Tue Sep 11, 2012

I have a contract contingent on financing and was denyed the loan with the apprasial came back $50,000 short. The seller is aware that they have no legal right to the escrow deposit money and they have admitted it and have seen two lawyers.They are now holding out of spite and we are trying to find another house and really need the $8,000 deposit. The FREC option that our realtor is submitting will take 4 months. We need that to be faster so we can move on with our life. We loved the house we are just not made of money......Any ideas to make this move faster?

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Michael,
The answer to your question depends on who is holding the escrow. Is it a title company, attorney or a real estate company?
Because title companies are not regulated by FREC, it is much easier to get your deposit monies returned.
Notwithstanding who's holding escrow, I would consult a real estate attorney and have them send a letter to the owner demanding a release of for the deposit be signed and threatning legal action.
This may be all it takes for them to take you serious.
Best of luck!
1 vote Thank Flag Link Tue Sep 11, 2012
Good Morning Mr. Hugo,

As realtors we are not allowed to provide legal advise to buyers or sellers. What we can do is offer suggestions to you on helping you navigate through this mess. This is a clear case in which you will have no choice but to contact a real estate attorney to review the contract that was executed and he/she can then advise you of what your rights are under the contract. Depending on how your contract was written and who holds the escrow deposit that will allow your attorney to guide you on what the steps are in your specific situation. I do have a real estate attorney that I work with that I can suggest for you, please feel free to contact me and I can forward that information to you.

Lila Lopez
RE/MAX Advance Realty
homesbylila@yahoo.com
305-772-2521
0 votes Thank Flag Link Wed Sep 12, 2012
Michael, many details are involve in a Real Estate Sale and Purchase Contract. What kind of loan do you applied for, FHA, (rider express that property need to appraise otherwise there is not contract), You need that selling agent and listing agent and Seller and buyers to go to a mediation.

Additional information is needed,
0 votes Thank Flag Link Tue Sep 11, 2012
In Florida the seller does have to sign the release of escrow form. I would start by calling the broker that is over the listing agent. If that doesn't get results I would speak with an attorney ASAP. On your next offer you might want to put less down up front with additional escrow to be placed after inspections and appraisal are done and satisfactory.
0 votes Thank Flag Link Tue Sep 11, 2012
Hi Mike,

If the Florida purchase contract is similar to the Texas contract, then the title company may not require seller consent to refund your earnest money when the property fails to appraise at the sales price.

Check the contract. In TX, the contract has a provision in section 4-A-1) Financing: that requires the property to satisfy lenders underwriting requirments "including appraisal" or buyer "may terminate contract and earnest money will be refunded."

If your contract was based on cash (and it doesn't sound like it was,) you may need to have an attorney prepare a demand letter, but first, call the title company to inquire - get your agent involved as your advocate (s/he already should be if you ask me....)
0 votes Thank Flag Link Tue Sep 11, 2012
I wish Florida was as awesome as Texas.....It is being held with my realtor so that have to follow rules that that take 4 + months to resolve. I have contacted a attorney and am waiting on that.
Flag Wed Sep 12, 2012
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