Home Buying in Vallejo>Question Details

Mei Wang, Real Estate Pro in San Francisco, CA

How do I get my deposit back?

Asked by Mei Wang, San Francisco, CA Tue Feb 26, 2013

I entered the contract in purchase the property in Daly City, CA. My loan got denied since I couldn't show enough funds for the down payment. I didn't remove the loan contingency, and I signed the CAR FORM CC. But the seller is refusing to sign. It has been 2 days I gave the written notice to seller's agent demanding my deposit back. Am I able to get the deposit back? Can the house be sold without the seller's signature on the release form? What's my next step?

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6
Josephine (Jo) Cusi’s answer
Hi, Mei! Escrow officer would need to have the seller sign the cancellation before they can fully cancel escrow on this transaction. Both parties have to come to a mutual agreement regarding the deposit.
If you have acted in good faith in getting the loan but were denied, then you can technically still get your deposit back. Your agent would need to convey your good faith efforts to the listing agent and the seller. What happened was unfortunate but at the end of the day, it would be in everyone's best interest to come to an agreement. The sooner the contract is cancelled, the sooner the house can be back on the market. With inventory being low to none, seller would have no problem finding a buyer right away. And with multiple offers, seller may get more money than what the cancelled contract was for. Everyone would be in a 'win-win' situation!
1 vote Thank Flag Link Wed Feb 27, 2013
First of all, do you have any agent? If so, ask your agent...If not, you were a bit foolish to buy without one. These are things that every agent will explain to you.

The issue here is the contingency window...are you within your contingency period or have you removed contingencies yet?

Generally these things get worked out but going to mediation is the next step. If you don't have an agent, you might also consult an attorney who can explain your contract details.

Best of luck.
0 votes Thank Flag Link Wed Feb 27, 2013
Have your Realtor fill out the paper work to go to mediation, this is an option, but always confirm with your Realtor and an attorney as to the choices you would like to pursue.
0 votes Thank Flag Link Wed Feb 27, 2013
If your agent can't help, consult with an attorney who specializes in real estate...
0 votes Thank Flag Link Wed Feb 27, 2013
Jo has nailed it....your agent should be able to advocate for you and walk you the process. Request their support.

Bill
0 votes Thank Flag Link Wed Feb 27, 2013
Hi Mei Wang:

Your loan was denied because you can't show enough funds for the down payment. and not for any other life changing events or lender's requirements beyond your control.

Proof of funds for your down payment is something within your control. You know that you have to come up with XXX amount of dollars beforehand.

It is your obligation and responsibility to adhere to the contract you have signed.

In my opinion, you have not done your diligent effort to fulfill your obligation as the buyer for the property you have agreed to purchase.

Seek a legal advice.

Best
0 votes Thank Flag Link Wed Feb 27, 2013
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