What does your CONTRACT say?? It should be pretty clear as to what happens if the buyer doesn't obtain financing. I'm thinking they would get the earnest money back. Most contracts are written to protect the buyer and financing is the last big "hurdle" and if that doesn't happen, they can usually get out and get money back. If they just got cold feet, (and don't have any documentation from the lender saying financing was denied), then you MIGHT have a case to get the EM back. Either way, you need to talk to your Realtor. Sounds like today is the last day of your listing period with him/her.... more
Judy, if a seller has multiple offers, we're one buyer is paying all his/her closing costs and the other needs some seller concession, the seller will likely prefer the buyer who is paying their own closing costs. No seller wants to risk commuting themselves to a transaction that depends on the appraised value, more so than it normally would. There is less pressure for an appraisal to bring in values at the purchase price than to bring values that will absorb the purchase price AND the seller concession amount.
Obviously this isn't true in all cases, but I do believe that it's the general way of thinking these days.
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Senior Loan Officer
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