Home Buying in Pasadena>Question Details

First Time B…, Home Buyer in Temple City, CA

If I cannot get a loan and it's past the 15 days contingency, can I still get my deposit back?

Asked by First Time Buyter, Temple City, CA Wed Feb 16, 2011

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First Time Buyer,

It is my understanding that California is not a "passive contingency removal" state, meaning the buyers contingencies MUST be removed in writing. If you have not removed your financing contingency in writing and the seller has not issued a Notice to Perform that you have not complied with, then you should be able to cancel the agreement and get your deposit back if you cannot obtain a loan. Check with your agent to find out the specific details of your transaction.

Good luck!

John Barry
DRE #01856079
Coldwell Banker Residential Brokerage
15490 Ventura Blvd., Sherman Oaks, CA 94103
Cell: 323-810-7976
Email: john.barry@coldwellbanker.com
Facebook: http://www.facebook.com/RealtorJB
Twitter: @RealtorJB
0 votes Thank Flag Link Fri Feb 18, 2011
Hello First Time Buyer,

Have you waived your Loan Contingency in writing as of yet? If the answer is no, then you have the ability to get out of the transaction and get your entire deposit back. The standard California purchase agreement gives you 17 days after acceptance to waive your contingencies unless otherwise agreed to in writing. However, with your loan contingency you have the option to keep the loan contingency active until the designated loans have funded if your Realtor checked the proper box on page 2 of 8 of the purchase agreement, and if the Seller's did not counter this out of your offer. While some purchase agreements do not require contingency removal to be in writing, the standard California purchase agreement requires your contingency removal to be in writing. Speak with your Realtor and inquire as to the terms of your Loan Contingency. Furthermore, you may also try to speak with another Lender to see if you qualify. Good luck!

Matt
0 votes Thank Flag Link Wed Feb 16, 2011
Did your Attorney ask for an extension for your mortgage comittment... If your Attorney did not ask for an extension, you are considered as 'waived' your contingency right, and it would be difficult to get your earnest money back.. What reason were you denied? You should have your attorney and your Agent contact the Sellers Attorney and the Listing Agent right away.

You may try to salvage the deal by determining if a co-signer on the loan would ensure your approval.

Best of luck,

David Jaffe-SRES, CDPE
Realtor-Coldwell Banker.
0 votes Thank Flag Link Wed Feb 16, 2011
Have you removed your contingencies in writing?
0 votes Thank Flag Link Wed Feb 16, 2011
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