Home Buying in 80228>Question Details

ashandonay, Home Buyer in Lakewood, CO

How can I get my earnest $ back after getting screwed by the down payment assistance programs?

Asked by ashandonay, Lakewood, CO Thu Jul 10, 2014

We have been under contract on a property. My husband and I went through the Metro Mortgage Assistance Plus program. Now 2 days before closing I am being told that we do not meet the requirements. ONE day after the loan objection deadline, so now we are out all of the $ that we have invested thus far. We are lead by our government to believe that this program would benefit us, in contrast it detrimentally hurt us in the end.

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Your Buyer Broker should have re-negotiated your LO deadline if you didn't already have full approval. Also, there should have been an additional Dates & Deadlines insertion re: the program approval, separate from the LO. And your agent should have been on top of the program contact to ensure a decision was coming within the deadline time frame or re-negotiated an extension. I don't want to make assumptions about the whole situation, but you may be able to appeal to your Buyer Broker for negligence in protecting your EMD.
0 votes Thank Flag Link Thu Jul 17, 2014
If you are past the loan objection deadline, there is nothing you can do contractually to get your earnest money back. You can however try to appeal to the homeowner to give it back to you any way. Let them know that this was something out of your control. I have seen it where the sellers sometimes feel bad for the buyers and will give it back to them. That is easier done on a home that they are not living in. If they were living in the home and you crashed the deal that they were moving up on, that may not go over so favorably. Good Luck.
0 votes Thank Flag Link Thu Jul 17, 2014
Lenders run your credit a second time as you near the closing date, which is what I am guessing happened here. If something changed between the time you applied for the loan and this final credit check, then lenders can change loan conditions or refuse to fund the loan. I'm hoping you have an agent to help you with this problem since you are now past the contractual closing day and the loan objection deadline. In a case like this, you may have to talk to the sellers and see if you can negotiate a return of all or part of the money.
0 votes Thank Flag Link Sat Jul 12, 2014
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