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Genevieve, Renter in Staten Island, NY

How long does it usually take to get my money back in escrow after denial of a loan from the bank?

Asked by Genevieve, Staten Island, NY Mon Dec 31, 2012

It has been a month. My lawyer keeps saying they havent heard from the seller. I dont know who to believe!

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Once a bona-fide denial is in writing its forwarded by your attorney to the sellers attorney with a request for the downpayment to be returned. However, due to different circumstances I have seen some time lapse in these situations. Its merely up to your attorney to see that this gets completed.
0 votes Thank Flag Link Tue Jan 15, 2013
Followup again with your attorney. You should have results by now.
0 votes Thank Flag Link Wed Jan 2, 2013
Unless there's a legal dispute the check should have been cut within 48 hours of your terminating the contract under the financing contingency clause. If you failed to terminate in the manner proscribed in your contract then the earnest money deposit is likely forfeit to the Seller.

Where is you agent in all of this?

My advice is call both your agent and your attorney and tell them that unless they tell you that they have allowed you to breach the contract by not terminating in a timely and appropriate manner that you expect your earnest money deposit refunded and delivered to you within the next 48 hours. Let them know this isn't up for discussion.

If they tell you that you did not terminate the contract appropriately I would suggest you let them know that the reason you hired them to begin with was to look after your interests and that apparently they failed to do so and that unless they are prepared to reimburse you immediately that they have given you no option other than to file a formal complaint with the NY State Real Estate Commission, and Bar Association. In addition let them know that as soon as you hang up you'll be contacting the State Attorney Generals office and filing a compliant. Then I would do exactly that.

You need to be certain that you are in the right, did you terminate in a timely manner as spelled out in your purchase contract? Did you apply for the amount the contract stipulated or a different amount.? While your agent and attorney should have been there to make sure you did everything right, you're an adult, and bear responsibility as well. You want to be sure you did what was required before you start filing complaints, however if you did do things in the proper contractual manner then it's time to force the issue. If you do find yourself having to force the issue do your'self a favor and don't think about using the same agent and attorney again as they will have shown themselves to be unprofessional as well as incompetent.
0 votes Thank Flag Link Tue Jan 1, 2013
First I would like to say that your attorney should know the details of the contract and would know when the funds will be refunded. If the monies are owed to you according to your contract it should not take more than thirty days. You should ask your attorney who is holding the funds since it is in escrow the buyer should not have it. One of the two attorneys should be holding the funds. Have you presented the rejection letter to your attorney and/or has he forwarded it to the other attorney.
Again Your Attorney should have the answer.
0 votes Thank Flag Link Mon Dec 31, 2012
I know this isn't what you want to hear, but your attorney is the only one who can guide you here since he has all the details. If you're not happy with your present attorney you could consult another but I would try my best to work with your present attorney.
0 votes Thank Flag Link Mon Dec 31, 2012
I apologize in advance for this answer, because it probably seems like a cop out. Your attorney is the best one to answer the question. He knows more about the terms of your Contract.

As long as you have complied with the terms of the Contract and the Seller doesn't feel he has any claim to the money it should only take a week or two.
0 votes Thank Flag Link Mon Dec 31, 2012
Sounds like your lawyer is waiting for the sellers to sign off on the termination paperwork. When money goes into an escrow the party holding it must have signatures from both parties saying what to do with it. My guess is the seller is mad that you did not get the loan and so won't sign the release to allow the lawyer to return the funds. Your lawyer will have to advise you what can be done.
0 votes Thank Flag Link Mon Dec 31, 2012
Your attorney should be answering your question, have you asked that he/she call the seller side rather than waiting; if your attorney isn't being helpful consider consulting with another....
0 votes Thank Flag Link Mon Dec 31, 2012
Should be in most cases within 30 days.
0 votes Thank Flag Link Mon Dec 31, 2012
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