Home Buying in Denton>Question Details

Tonygu98, Home Buyer in Denton, TX

Can I get my initial deposit back due to loan contigency?

Asked by Tonygu98, Denton, TX Mon Aug 27, 2012

The lender told me my loan application was not approved becasue of high investment rate 42% in the community. On the 17th day of contract, I sent email to my agent, listing agent and escrow that I cancelled the contract due to loan contigency. On the 18th day, my agent prepared cancellaton addendum and I signed it but dated 17th day. Is there any problem to get this initial deposit back?

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Joe is right... this is a conversation you need to be having with your agent. Your contract spells out the details of any contingencies you have. This is a straight forward conversation with a direct answer. I always prepare a timeline of all important dates listed in the contract for my clients. It is important to understand these dates and understand what everybody's duties are so they can be held accountable.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes Thank Flag Link Tue Aug 28, 2012
Review your contract to determine the answer. Without knowing what you agreed to in the contract no one would be able to answer this question. It's best to discuss this with your agent.
0 votes Thank Flag Link Tue Aug 28, 2012
The question is whether your notice to the sellers was timely under the contract. The general rule is that timely notice of a buyer's inability to close due to an unmet contingency entitles the buyer to the deposit. Conversely, untimely notice makes the buyer's claim to the deposit weaker.

As a practical matter, the non-performing party will usually submit a termination and instruction to disburse the deposit in the manner most favorable to that party's self-interest. Often times the other party is willing to give up any claim to the deposit to avoid a confrontation and to speed efforts to move in a new direction

In matters like this a close review of the agreement and subsequent events is mandatory.
0 votes Thank Flag Link Mon Aug 27, 2012
On professional can render an opinion we are not part of the executed sales agreement which governs how all parties what can or can't done

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer

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0 votes Thank Flag Link Mon Aug 27, 2012
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