Hi Sharon,
Refunding a buyer's deposit depends primarily on the contract you signed, and secondly whether or not the seller(s) are willing, if contractually allowed to keep it, to give it back. Have your realtor go over your contract with you, in person, if possible, to discern your rightful position.
Best of luck, and happy hunting.
Joe Connolly

Wed Feb 20 2008, 17:58

Sharon,

On the front page of the contract, there are sections to be completed that state the details of the loan you will be applying for. This section sets the parameters of the loan and can be used as a stop gap for a contract loan. These are suppose to be the boundaries of the loan limits, interest rate, etc..

You may have few options. If the loan is not what your mortgage broker indicated you would receive, then I would push them to make it right. The loan approval is followed up by a GOOD FAITH Estimate that should have indicated percentage, payoff, taxes, and payment. This should not have changed.

However, if you did not have all of your documentation for the loan that you were approved for and then presented documentation that changed the loan, then you have walked yourself into a corner.

I think your best bet is to work with the mortgage agent to make a better loan. You can always work with other lenders to see if they can make a better loan. I am a believer in back up loans.

If you have released contingencies on the loan portion of the contract you could be held in breech of contract and not only could you lose your deposit but the seller has the right to sue for monies lost holding their home off the market. If you lose a legal case you could also be at risk for paying everyone's legal fees. I would review your contract closely and if you really can't make it work, consult a real estate attorney.

Good luck,
CJ

Wed Feb 20 2008, 08:30