Dear Veronica,

The answer is maybe.

Of the buyer disclosed in writing to either you or their mortgage person false information, usually in writing, then you put your home under agreement under false circumstances and are entitled to the deposit money.

Separately, if either of the agents involved in the transaction did not do their homework to see if the buyer was able to buy the property, you may be entitled to a claim under the agent's insurance.

Agents MUST learn to have only pre-approved borrowers go to agreement. it's almost criminal that agents throw stuff against the wall sometime even though they don't get paid until closing!

Good luck!

Veronica
The correct answer is....it depends on the written contract.
Why are you not asking your Realtor this question?

In most cases as long as the buyer has not removed the loan qualification contingency, they are entitled to a refund of their deposit. In most cases escrow does not officially open until the buyer has removed all contingencies.

From the marketing perspective the property is still available for showing, still in the MLS as Acitve, or "Taking Back Up Offers"m so there should be no damage to you.

My question to your listing agent is this: How did the buy submit an offer without having been pre-qualified by a lender? Where I work we REQUIRE that a pre-approval be submitted with the offer.

Good luck.

Veronica, that is an unfortuanate situation. Many times this can be avoided by verifying the buyers viability before accepting the contract. Discuss this with your Realtor. If you are not currently represented by an agent, contact me and I will visit with you in more detail to insure the next contract is solid. Best Wishes - Charlotte Patterson 409-0398 CharlottePatterson@cox.net

Veronica,
Unfortunately... no. The earnest money will be given back to the buyer. The Real Estate contract to purchase your home that you signed with the buyer has a clause pertaining to financing. If the buyer is not able to secure a loan (in this case they did not qualify for the amount to purchase the home) then the earnest money is returned to the buyer.
Is your home listed with a Real Estate agent? If so consult them. They can direct you to the paragraph in the Purchase contract that covers the financing and how it pertains to the buyer. You will need to sign as well as the Buyers, a Contract cancellation and Release of Earnest money.
I hope this helps!. If you are selling your home as a For Sale By Owner please contact me and I can answer any questions you might have.