Home Buying in Massachusetts>Question Details

August, Home Buyer in USA, Mobile, AL

Can Iget deposit back?

Asked by August, USA, Mobile, AL Fri May 30, 2008

If the bank reject the loan befor closing the house because I'm got laid off do you think I can get my deposit back?

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Answers

4
I have read the last answer and this makes complete sense. Being on the mortgage side of things I have the understanding that if the bank can not qualify you based on you not having a job, then they should issue you a denial letter.Once they send you a denial letter the sellers should let you out of contract.

I hope this helps.

Good Luck!

Jonathan
0 votes Thank Flag Link Mon Jun 2, 2008
Hi August:

It really depends on the wording of your contract and at what stage your contract is at. There is usually a loan / finance contingency on the purchase contract and a period before you have to remove the loan contingency. If you have not removed the loan contingency yet and you can not get a loan due to the loss of your job, you should be able to get your deposit back.

However, if you removed the loan contingency already, and then can not get the loan, then the seller is probably entitle to the deposit.. Which is what happened to one of my colleague's client, she lost her job right before closing and lost the house as well as deposit. However, if you can provide the proof, perhaps the seller will allow you to get part of the deposit back? But unfortunately, if you removed the loan contingency and back out because you can not get the loan, you can lose your deposit.

Better go back, review your contract and consulted with your Realtor and/or Attorney about this situation.

Good luck,
Sylvia .
0 votes Thank Flag Link Sat May 31, 2008
Sylvia Barry,…, Real Estate Pro in Novato, CA
MVP'08
Contact
Depends on the dates of your mortgage contingency (if you had such a thing in your contract). If they rejected the loan before your contingencies mortgage commitment date you should be able to get your good faith check back. Look over your contract or have your agent do so and see what your options are.

good luck!
0 votes Thank Flag Link Fri May 30, 2008
You should be able to get your deposit back. In your contract it should cover the circumstances in which you are entitled to receive your money, ie deafult on sellers behalf, default on buyers behalf. In Lousiana, if the buyer applies for financing in good faith, but is unable to secure financing, they are entitled to their deposit. Any idea why the lender denied your loan just prior to closing? It is always best to go ahead and get a pre-approval before making an offer. That way the loan is subject only to the title work and appraisal.
0 votes Thank Flag Link Fri May 30, 2008
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