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Gina, Home Buyer in

Bank withholding my deposit after pulling out of P&S

Asked by Gina, Sat Aug 18, 2012

We were going to purchase a foreclosure ( gave deposit 10k and signed P&S). Had the inspection and it turned out bad. Pulled out and signed the release form and the bank did too. It's been 2 weeks and they have not release my check. My real estate agent said the check was cut in another state and then will be mailed to the listing agent and he would be notified. Does this usually happen? Why would they cash it if we never closed?

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9
It's a Bank nothing is FAST- assuming they let you have a Inspection on a foreclosure and it was no good you will get your money back-
Vincent
Boston
http://Www.JaguarRE.com
Web Reference: Http://www.jaguarRae.com
0 votes Thank Flag Link Fri Sep 21, 2012
IF YOU WANT TO DO REAL ESTATE DEALS, PLEASE GIVE ME A CALL...


Carey T. Hansen
"Your Real Estate Agent today, tomorrow and into the Next Generation"

NextGen Realty

1243 Commonwealth Ave.

Allston Ma 02134

Phone: 617-548-7236

Fax : 888-875-6973

chansen@nextgenrealty.com

Licensed Real Estate Professional
0 votes Thank Flag Link Tue Aug 21, 2012
Consult your real estate attorney asap.

Good faith deposits are always cashed and held in escrow so it is not unusual.

Territory.com
Massachusetts Premier Buyer Brokerage
Web Reference: http://territory.com
0 votes Thank Flag Link Tue Aug 21, 2012
I would be more than happy to help you. Feel free to give me a call anytime.


Carey T. Hansen
"Your Real Estate Agent today, tomorrow and into the Next Generation"

NextGen Realty
1243 Commonwealth Ave.
Allston Ma 02134
Phone: 617-548-7236
Fax : 888-875-6973
chansen@nextgenrealty.com
Licensed Real Estate Professional
0 votes Thank Flag Link Sun Aug 19, 2012
All deposit checks get cashed (deposited in escrow) right away. No matter who holds the money (bank, attorney, listing agency) they cannot credit you at closing unless they have the check cleared first.

Most intitutions are very quick to take your money, and very slow to release it. If you followed the right procedure releases signed,written notification, etc) and did that in the time frame required, your money will be returned. Just keep pressing, nobody (except you) is in any hurry.
0 votes Thank Flag Link Sat Aug 18, 2012
Most states mandate a return within 30 days. A deposit check is deposited usually as soon as the purchase agreement is ratified (agreed and signed by all parties). You can call your states real estate commission and ask what the law is for your state for time to reurn a deposit. If you are dealing with a large or a national company this is what you have to put up with . Good luck working things out
0 votes Thank Flag Link Sat Aug 18, 2012
Hi Gina,

If both you and the bank signed the release form you will get your money back. At the same time if the money went to escrow account and is being cut from a different state than it might take a little while. When money is being put in escrow the checks clears almost right away to make sure that the funds were there. Since inspection failed now a live check is being cut out to you so it might take sometime. There is nothing your agent can do to speed up the process.

Mario Pavli
0 votes Thank Flag Link Sat Aug 18, 2012
The deposit money is deposited into the escrow account of the office of the selling agent or the seller's attorney in the absence of an agent - it does not just sit in the file. It is a required procedure. These escrow accounts are regulated to ensure security of the funds. If both buyer and seller have signed the release you should not have any problem.
0 votes Thank Flag Link Sat Aug 18, 2012
Gina,
The checks are cashed and deposited at the execution (signing by all parties) of the P&S. This will always be the case - bank owned or not.

What your realtor is telling you is most likely true. Even in my office, our checks are not cut from the actual office, but from headquarters. So, it can take a week to two to get a check back when a deal falls apart. Have you received a signed release from the transaction from the bank?
0 votes Thank Flag Link Sat Aug 18, 2012
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