Home Buying in 30044>Question Details

jeimyhoney19, Home Buyer in Los Angeles, CA

can I recover my earnest money after signed an amendment to released the earnest money, even is not my fault the loan was declined?

Asked by jeimyhoney19, Los Angeles, CA Thu Jan 24, 2013

the bank asked for extention twice, the second time they said the loan was approved but that they needed extra time to prepare loan packages and wires, so since the seller gave a condition of giving an extension but only if we removed the contingency of the earnest money so we trust that the loan was approved and we signed after all of a sudden the bank said that an credit exemption was needed, after they said it was approved, two weeks after waiting and waiting with lack of communication on theyr side the bank said the loan was declined because there was lateness on one bill, so what we do now, we trusted the bank and now we have to loose our money? any advise? help please.

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6
I would have another lender take a look at your file to see if you are still able to purchase, even if you don't get your EM back for this particular property. Some lenders are sticklers but others are more flexible and understand that not everyone has perfect credit and an explanation of the circumstance will do just fine. Don't sign anything that would give away your hard earned money to another party - did your agent go over this with you?
0 votes Thank Flag Link Fri Feb 8, 2013
Dear Jeimyhoney19: the purpose of signing an amendment is to legally document an agreement, so, even though I am not an attorney and you should consider seeking legal counsel for this matter, I doubt that you would be in a position to recover your earnest money UNLESS you pursue your lender for reimbursement - if they misled you then perhaps they will cough it up. If you didn't consult them and have something in writing between you and the lender about removal of all contingencies, again, I don't think you would have a way to recover the EM. Talk to an attorney if you think it's worth it.
0 votes Thank Flag Link Fri Jan 25, 2013
If you not sure of outcome you never sign any amendments to the sales contract, or you can loose your rights. Still I would suggest you to consult a real estate attorney, to see if some thing can be done in your situation.
0 votes Thank Flag Link Fri Jan 25, 2013
Get your agents broker involved. They should be able to help. A real estate attorney can also often times assist
0 votes Thank Flag Link Thu Jan 24, 2013
In a sales contract matter, you would need to consult with your Buyer's Agent. Guiding you through this process is part of their responsibility.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Thu Jan 24, 2013
So sorry to hear your situation. Unfortunately you will not get your earnest money back since you gave that right up. Sellers are entitled to it as they took the property off the market in good faith that your loan would be approved and extended several times. My advice for any future purchases is to make sure you work with am experienced lender. Brand mortgage has given me great results.
0 votes Thank Flag Link Thu Jan 24, 2013
You're absolutely right Robin. Chris Shumate at Brand is awesome.
Flag Fri Feb 8, 2013
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