Home Buying in Minnesota>Question Details

Paul Kim, Home Buyer in 55306

I'm a student at the University of MN and I was going to buy a cond

Asked by Paul Kim, 55306 Sun Mar 16, 2008

I'm a student at the University of MN and I was going to buy a condo near school. I put down an earnest money of $12,300. I was approved for financing in April, but my identity was stolen and my credit was badly abused and now I can't qualify for financing. This was a new construction and everyone was suppose to close around the middle of October. I was not able to close on the condo, because I was denied for financing, and in the PA it states that I was not able to get my earnest money back. They just sent me a letter that said that I did a preclose walk through, but I told the title company that I was not able to get financing, and I never did my walk through for my unit, I am not sure if the forged my name or what. It took me a long time to come up with the earnest money, and I've talked to several different lawyers, and I have heard a lot of different answers. I was just wondering if anyone could offer me and more advice.

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Find an attorney that specializes in real estate. As a Realtor, I don't give out legal advice. You are on the right track, as Todd has stated below, if you signed a financing addendum... If you couldn't get financing then you should have been able to get the earnest money deposit back. If you bought from a builder it's always hard to tell because they sometimes have different contracts.

Best advice, consult a real estate attorney
1 vote Thank Flag Link Fri May 2, 2008
The question is, what would be your ideal outcome? If you could get your credit picture straightened out, would you still want to buy the condo? Do you just want your earnest money back and to walk away from the transaction? Your best course of action is to work with an attorney to resolve this complicated situation. Lesson to be learned here -- have an attorney review a contract or get representation BEFORE you enter into a purchase agreement and understand the contract you are entering into.
0 votes Thank Flag Link Fri May 2, 2008
Paul, this is a legal question and Realtor's aren't qualified, unless they are an attorney as well, to answer this sort of question.

A few things come to mind though. First, did a Realtor represent you on the buying side. I hope so. Second, typically, if there was a financing addendum written and signed when you bought, and you don't qualify, you, in normal circumstances, should get your earnest money returned.

You are on the right path....get a good real estate attorney on your side.

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Thu Mar 20, 2008
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