Home Buying in 17403>Question Details

Wendy, Renter in Hanover, PA

I put a $1000 deposit down on a home. The financing fell through can the seller keep the money?

Asked by Wendy, Hanover, PA Wed Jul 21, 2010

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17
Good answers below - Check with your agent
1 vote Thank Flag Link Tue Dec 20, 2011
Was your contract contingent upon financing? If so did you apply for the financing in the specified time stated on the contract. Your answer is in your offer.

Have a great day;

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Making home ownership more than a dream...
Retired Mortgage Banker
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0 votes Thank Flag Link Tue Jun 11, 2013
It's all about the dates in the contract, certainly get in touch with your buyer's agent if you are working with one, or a real estate attorney if you are not working with a buyer's agent. Financing is usually covered during your due diligence period so check contract carefully for those specified dates. Best of luck to you moving forward!
0 votes Thank Flag Link Tue Dec 20, 2011
This one is simple, if you have a good agent this is usually avoided by contingencies and due dilligance. However it comes back to the contract. There is always something there no matter what state you are in that describes default and deposit money. SIMPLY whoever is at fault is at fault. Agents do make a differance!!!!
Hope it all works out.
0 votes Thank Flag Link Tue Dec 20, 2011
As others have said, it depends on what your contract states. Do you have an agent representing you? Call that agent.
0 votes Thank Flag Link Sun Dec 18, 2011
If you checked contingent upon the buyer obtaining financing then you will get your money back. In today's market, anyone trying to get financing should make sure that their real estate agent has checked that off. I've seen a person with a 750 credit scores and great ratios get turned down because they couldn't remember where they got the money from for a $100 deposit they made into their bank account. In fact I've seen so many strange things happening with many of the lenders that you need to protect yourself.
0 votes Thank Flag Link Sun Dec 18, 2011
It depends on what your contract says. Why did the financing fall thru? Did you apply for financing in a timely manner? Ask your agent, but in many cases if you don't get the loan then the money will come back to you the buyer. But if you did something to cause this, or wrong, or missed a deadline then maybe you will lose it.
0 votes Thank Flag Link Fri Mar 4, 2011
I wrote an answer assuming you used a real estate broker to buy the property. If it was a FSBO deal without a good contract I wish you good luck.For $1000 you can not hire a lawyer.You might have a chance in a small claim court.
0 votes Thank Flag Link Wed Mar 2, 2011
Any real estate agent should have put a mortgage contingency in your contract .Especially for a first time home buyer .
Threaten to sue the agent and the broker in case they forgot to put the mortgage contingency in the contract.
The $1000 should be given back very soon, but make sure you have a letter from the lender that refused to give you a loan.
The $1000 is not in the hands of the seller, but should be in an escrow account with the sellers listing broker.
0 votes Thank Flag Link Wed Mar 2, 2011
Wendy, You have received good advice from some of the others. Hope you have a buyer's agent who can check it out. It will depend on the contract. Hope you have a mortgage contingency . Consult an attorney if necessary.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Mon Jul 26, 2010
That would depend whether you have a financing contingency and if so whether you are still within the time frame for return of your earnest money deposit. If you are within the financing contingency period, you will need proof from your lender that your loan has been denied.
0 votes Thank Flag Link Thu Jul 22, 2010
Do you have an agent? Your agent or attorney should be advising you at this point.

The answer depends on how the contract was written. Was it contingent on you getting financing? Why did the financing fall thru? Were you timely and truthful in your application?

Who is holding your deposit? The seller, an escrow company, or a brokerage?

How you answer those questions will determine if the seller can legally keep the deposit.
0 votes Thank Flag Link Thu Jul 22, 2010
The return of your deposit is contingent upon the terms of the contract. If your contract allows for this then you and the seller should sign a cancellation and release of deposit. If you have no contingency for financing then your deposit may be at risk.

Torey Eisenman
Benchmark Real Estate Group, Inc.
321-422-4729
0 votes Thank Flag Link Wed Jul 21, 2010
What is your agent suggesting--Much will depend on your contract--review the contract as the answer can be found in the document--or consider consulting with an attorney who specializes in real estate.
0 votes Thank Flag Link Wed Jul 21, 2010
Only a lawyer could see through all the possibilities of getting the money back. How much could you pay for the lawyer. Most of the contracts are with mortgage contingency. If non of the methods could bring solution. You could go the realty board to which the seller is attached. Otherwise go for the ultimate complaint to state department or go to small case court. Never loose money on any reason then lt will become a habit.
0 votes Thank Flag Link Wed Jul 21, 2010
Wendy,
Most contracts are written with deadlines, stipulations & contingencies. These elements will determine if you receive the money back or if the seller is entitled to retain the money. Check your contract or talk with the agent involved.

Stacy Carter
Associate Broker
Better Homes & Gardens Real Estate Metro Brokers
678-641-6631
0 votes Thank Flag Link Wed Jul 21, 2010
If your agreement of sale has a mortgage contingency in it, you will probably get your money back. the sellers agent may ask you to try another mortgage source before accepting the cancellation.
0 votes Thank Flag Link Wed Jul 21, 2010
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