Home Buying in 91364>Question Details

emiorilla, Home Buyer in Los Angeles, CA

About to go through mediation to get as much first deposit back. What are the procedures?

Asked by emiorilla, Los Angeles, CA Wed Jul 31, 2013

5 MI companies denied the appraisal on the last day of escrow. Contingency already signed since inspection fine and appraisal reached price, and lender approved my loan. Afraid to lose my first deposit ($6000) for reasons that doesn't involve my me (if anything it's because the seller put the property up for more than it's actual value), I offered to put in 20%. Now lender wanted to go through 2nd appraisal because even if we are qualified for the loan, after 5 MIs denying the loan for this place, they now question the appraisal itself. Seller doesn't want to wait 2 more weeks, he's already charging us for $750 for 1st extension, and now he requires $1500 more for further extension. After 20% down, I will not have that money to pay for that extra $2250 even if the 2nd appraisal reaches value so now I don't have a choice but to backout. So now I want to go through mediation to get as much $6000 back. What are the procedures and the likeliness of getting a portion of my deposit back?

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Answers

3
Best thing to do is to consult with a real estate attorney. It gets complicated

Good luck,

Maggie Oreck
818.906.8388
Cal BRE Lic # 01352758
RE/MAX Showcase
info@maggieoreck.com
http://www.maggieoreck.realtor
0 votes Thank Flag Link Fri Mar 6, 2015
What a mess.

It is clear that you have been acting in good faith and it does not seem fair that you should be punished because your lender did not know they guidelines of the MI company and or the appraiser did not know what they were doing.

I wish I had a magic answer for you.
0 votes Thank Flag Link Fri Aug 2, 2013
Pending on your contract, it seems you have to negotiate with the seller, and most likly at least half of your deposit will be gone plus the cost if mediation. I my opinion your best option is still to negotiate with the seller and lender or loan broker to proceed with your transaction. Talk to your agent also, he needs to be involved in this negotiation. Best wishes and good luck. For my further info let me know of the out come.
0 votes Thank Flag Link Wed Jul 31, 2013
Thank you for the reply. Our agent has been negotiating with the seller this entire time but the seller is extremely stubborn and states that his FINAL OFFER is for us to bring in $1500 to his office today for any extension or else he will not accept anything anymore...
Flag Wed Jul 31, 2013
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