Can FL home buyers get their deposit back once they are not approved by the first lender or do they have to seek a second lender?

Asked by Crawfordwj, Kissimmee, FL Tue Apr 23, 2013

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Eileen Eskew, Agent, Orlando, FL
Wed Apr 24, 2013
In short, the answer is yes IF the finance approval contingency is entered into the contract and IF it is proven that you tried to get financing (this may require a try with a second lender). Make sure you work with either a Realtor and or Real Estate Attorney when entering in a contract for Real Estate Purchase..
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Bill Eckler, Agent, Venice, FL
Wed Apr 24, 2013
In the event your question is before the fact and you haven't yet gone to contract, you would be well advised to make certain your contract contained wording that protects you should financing become an issue. This wording should allow you to exit the agreement without penalty should financing not be able to be arranged.

If on the other hand you have already gone to contract, it would be advisable to refer to your agreement for your specific terms and personal options.

Good luck,

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Ron Climer, Agent, Hendersonville, NC
Wed Apr 24, 2013
As all the others have stated, it is impossible to answer this question without reading your contract. I hope that you read it BEFORE you signed it. If not, go back and read it now.

Some contracts might not have a financial contingency at all. Some state that the buyer has to make a "diligent effort" to arrange financing. You need to read your contract. If you don't understand what it says,seek legal advice.

If, after reading your contract, you believe you are entitled to your deposit back, send a letter demanding the return of your deposit to the person that is holding your deposit. Send this letter by U.S. certified mail. If this person has a Florida real estate license, turn in a complaint to the DBPR if they do not return your deposit. When Mr. Investigator calls them, they will return your deposit if it is supposed to be returned.
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Antonio Vega…, Agent, Saint Cloud, FL
Wed Apr 24, 2013
I agree with Steve and Mark below.
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Steve Schiff…, Agent, Orlando, FL
Wed Apr 24, 2013
Were you under contract with a resale or new construction?

With a FAR or FAR/BAR you typically just need to provide your "denial" within the time frame of your loan approval period and contractually the seller is required to give your deposit back.

With new construction the seller typically requires you attempt to get a loan approval from a second lender.

As others have said it comes down to the contract. Also, whether resale or new construction make sure you have a real estate agent representing you. Their job is to protect your interests.
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Mark LeMenag…, Agent, Lake Nona Orlando, FL
Wed Apr 24, 2013
As noted, it depends on what your contract says. Do be aware that if you get in a fight over the escrow, you may need a lawyer to help you get your money back.
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Lorena Correa, Agent, Orlando, FL
Tue Apr 23, 2013
Everything depends on your contract. However, this has happened to me. What I did was, I called the current lender and asked to keep my escrow until I found a new lender. Once I found a new lender the escrow money was transferred to my new lender.

Lorena Correa
Real Estate Agent
Keller Williams Advantage Realty III
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Danielle Sha…, Agent, Cape Coral, FL
Tue Apr 23, 2013
Deposit behavior is dictated by the contract. What do the terms within your contract state?

Sometimes speaking with a new lender is not a bad idea - many companies have different programs than their competitors.
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