Foreclosure in 77079>Question Details

Stl, Home Buyer in 77079

Can HUD keep my earnest money if it is their fault that we couldn't close on time?

Asked by Stl, 77079 Wed Jan 26, 2011

I put a contract on a HUD home on 12/22/10 with a closing date of 1/25/11. On or about 1/2/11 I was told that the property had been broken into. All of the copper was stolen, and a lot of damage was done to the walls, ceiling, furnance, etc. I have been very cooperative with HUD ever since, sending them the personal pictures that I had taken of the damage, patiently waiting on some sort of resolve. Unfortunately, to date, I have not gotten any info as to what will be done about the damage to the property, and to add to this, my closing date of 1/25/11 has a passed. I received a call this morning telling me that I have forfeited my earnest deposit, since the deal did not close, however, it was not my fault. I was able & willing to close on time, if HUD had repaired the home to condition that it was in when I put the property under contract, or if they had offered me some sort of concession for the damage. Can they keep my earnest money if it's their fault that we could not close

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0 votes Thank Flag Link Fri May 25, 2012
Hi Stl,

I'm sure you had an agent in the process of buying a HUD home, because it is only an agent that can show it to you and put in the contract. If there was an extension that needed to be filed your agent should have done that. Get your agent to read in the contract; but they generally states AS-IS. Get the agent to go over the contract with you since they should have filed an extension if she saw it was not closing in time. As agents that is what we are there for which is to clarify the contract and do any paperwork and correspond with the Seller's agent so things can be done in a timely manner. Each contract states, "time is of the essence".

If you want to put in a lower offer putting this in to consideration, just let me know. I hope you get your Earnest Money back.

Be Blessed.
Herma Young
0 votes Thank Flag Link Sat Feb 5, 2011
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