Home Buying in Pittsfield>Question Details

Me, Home Buyer in Pittsfield, MA

i lost financing for a house and the seller will not return deposits since extensions were not signed by

Asked by Me, Pittsfield, MA Wed Jul 22, 2009

either party. how do i get my deposit back

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5
Andrew gave the best advice, seeking legal council if you haven't already. Is the deal definitely lost, have you tried obtaining financing from another lender?
1 vote Thank Flag Link Wed Jul 22, 2009
You may be learning a very hard lesson. The contract and dates in the contract are very important, if you passed those dates I am not sure you will get your deposit back.

1st and foremost you need to contact a real estate attorney...ASAP.
1 vote Thank Flag Link Wed Jul 22, 2009
I am sorry for you having to be in this situation, but to avoid this exact situation is having in place signed Purchase & Sale Agreement, that includes the contingencies of the purchase and sale. If inevidable happens and the extension of one of the contingencies is needed, your broker will know ahead of time, make a sure, that the extension is granted and the paperwork signed in time by both parties or their attorneys.
Yours and the seller's attorneys knowing the detail of the case, will make the decision.
1 vote Thank Flag Link Wed Jul 22, 2009
In the Berkshires, the "forms" are different than those used elsewhere. It sounds like you ended up "out of contract" because you didn't meet the deadlines stipulated in your Purchase and Sale Agreement. These dates and deadlines are legally binding. If you are out of contract, the seller can keep your deposits as liquidated damages, and is free to accept another offer from another party - very attractive if they have another buyer waiting in the wings willing to pay more than you were. Did you use a local real estate professional as YOUR buyer agent , protecting your interests? Do you have a local real estate attorney? Dagmar's and Wendy's responses are right on. Use the professionals and their expertise.

The property itself may not be lost to you, but before you apply for financing elsewhere, you will need to be under contract with a fully executable purchase and sale agreement. It may mean renegotiating with this seller and drawing up new documents. They are under no obligation to honor the terms upon which you previously agreed. Make sure you are fully aware of all deadlines. When in doubt, clarify. If you don't, as you have found out, the results can be a very expensive legal lesson and a big disappointment.
0 votes Thank Flag Link Tue Sep 29, 2009
Entensions on which form? We have seen people lose bank fianancing and some lose the intial deposit!
0 votes Thank Flag Link Thu Jul 23, 2009
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