Home Buying in Parkville>Question Details

eawalker73, Home Buyer in Baltimore, MD

trying to get our deposit back from the seller of a home we were trying to purchase

Asked by eawalker73, Baltimore, MD Fri Sep 14, 2012

we had a ratified contract, the home didnt pass appraisal, but now the seller wont return our deposit. after the appraisal was given to the bank we were then told that we no longer could afford the home due to decrease in credit score, and that inproper financial information was given to the lending bank. all the proper documents were given to the lending bank( pay stubs/tax forms) but we didnt get the non affordability informaton until two weeks before the closing date, and the seller moved out of the home. the home was a short sale, but now the seller doesnt want to releaseour deposit due to the fat she moved out of the home. the home was about to be in forecloser, so she was behind on her mortgage. she doesnt want to sign because now she's paying rent, and she beleives its our fault the home wasnt purchased by us. how do we get our money back

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6
Speak with your agent and if necessary their Broker or office manager. Maryland contracts are very specific on the handling of deposits. If you had, and were in the time limits for, a financing and/or appraisal contingency you should be given your deposit back. However you can't force the Seller to sign. In some cases that are clear cut the Broker can make a decision to release the deposit without these signatures.

Your other option (in the standard MD contract) is mediation and then you can litigate. If you aren't getting the answers that you want contact an attorney for full advice.
0 votes Thank Flag Link Sun Sep 16, 2012
Your contract hopefully specified the terms of the deposit.
You may want to contact a real estate attorney to find out what rights you may have.
Good luck!
Sincerely,
Marney Kirk
Keller Williams Excellence Realty
0 votes Thank Flag Link Sat Sep 15, 2012
The return of Earnest Money Deposit is bound by the terms and conditions of the contract. This is an area that brokers, and real estate agents, take very seriously.

Unless the issue is resolved by the brokers, you should seek legal advice.
0 votes Thank Flag Link Sat Sep 15, 2012
If the assumption of my fellow colleagues here are correct-that you are not represented by a realtor- or even if you are represented,you should seek a legal advice.
0 votes Thank Flag Link Sat Sep 15, 2012
Unfortunately for you, I'm inclined from the information you provided, to agree with Mr. Thomas who has already answered. Couple of questions though. You mentioned it was a short sale. Was the seller represented by an agent? If so, your money should have gone into the Brokers Escrow account. That money shouldn't be released if the contract falls through unless both parties agree to who gets it. If you and they were not represented by a sales agent and buyer’s agent then you each have learned the hard way why Realtors are licensed in each state to help the public start and complete a real estate transaction, which for most people is the largest transaction that they will ever make. As a Realtor we are bound to do what is best for our client, be it the seller, or the buyer. It is our job to know the process, the pitfalls, and to walk our clients through the entire process in order to get to the closing table and complete the transaction. It seems in your situation, both you the buyer, and the seller lost out. The seller lost their home because the short sale (a complicated process in its own right, even with professional Real Estate agents communicating with the bank to try and facilitate the process) fell through. You seem to be out your deposit, and the home that you wanted, because you were not properly represented and did not have someone to make sure that you were protected in the contract and to coach you on what you needed to do, or not do until the home was closed. I wish you the best and hope that in the future you will find a Real Estate professional that you trust and allow them to help you find your next home, and get you all the way to the closing table where you’ll be handed the keys to it.
0 votes Thank Flag Link Fri Sep 14, 2012
Based on what you said;
You are trying to do this without a Realtor,
You did not have a Loan Contingency
You bought something on time which ruined your Credit Score,
You took too long getting the Loan Approved.

It sounds like the Seller is perfectly within their rights.
0 votes Thank Flag Link Fri Sep 14, 2012
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