How do I get my good faith deposit back on a house that the deal fell through?

Asked by Homebuyer_2010, Millburn, NJ Tue Apr 20, 2010

I certainly hope that the next time I return to this forum will be good news :( So a few weeks or almost a month ago I asked about the process of homebuying here. I decided to take a break from the homebuying process since I found it to be too stressful.The realtor I got was an idiot and same thing with the mortgage broker she referred.The house that I was supposed to buy deal never went through.Told the realtor that I didn't get approved for the mortgage because I lack trade lines so send the check back. That was the last time we spoke. So now, I get my bank statement and lo and behold the realtor deposited the check that I asked her to cancel and send back.What is my recourse in getting my $1000 good faith deposit back? I just really want this damn saga to end.

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5
L.hands722, Home Buyer, New York, NY
Thu Jun 1, 2017
hello i put a good faith deposit on a house when i found out how much the mortgage payments would be i decided not to proceed with purchasing the home how do i get my deposit back?
0 votes
Mark Overhol…, Agent, Clovis, CA
Tue Apr 20, 2010
If you think the Realtor you worked with was an idiot, then instead of speaking with her about the deposit check, speak to her superior. There should be an office manager or head broker that will do a better job getting you your deposit back. I know I hate to continually rely on someone that I have already deemed incompetent.
0 votes
Homebuyer_20…, Home Buyer, Millburn, NJ
Tue Apr 20, 2010
Hi Kent,

Thank you very much for your answer. The thing is the next day the contract was accepted I applied for the mortgage I got denied and same day my lawyer sent a termination letter to the seller as well as instructions to my realtor to cancel the deal and that the check should be returned to me. The whole process after the offer was accepted it took 24hrs....That is the reason why I was waiting for my check. A termination letter, an email and a phone call all with the same message that the deal was terminated and my check to be returned to be yet my check was deposited! Come on! How much of an idiot this person can this agent be...seriously....how can I trust this person? Especially with such a big purchase

I honestly don't even want to talk to this realtor coz as you can sense I'm still very upset with her. She's unreliable, unprofessional and an all around idiot.

See I get a carried away....LOL
0 votes
Julia C. San…, Agent, Stuart, FL
Tue Apr 20, 2010
I concur with the answer below. Check with your Realtor first to request your escrow be returned. If you were denied the loan, but made a good faith effort to get financing within the timeframe stated in the contract, you should have a denial letter from the lender and that should be a valid reason to get your escrow back.
0 votes
Kent Gagon, Agent, Chandler, AZ
Tue Apr 20, 2010
Homebuyer_20
Typically when you sign a contract and agree to the terms the Realtor has the obligation to deposit the earnest money check with the title company in the contract. Once the title company has that money they deposit it and when the home closes it is applied to your down payment and/or closing costs. Now with all that out of the way and without seeing your contract you either need to call the title company that was in the contract to request the earnest deposit back. You will probably be asked to show a loan denial letter from your mortgage broker to get that money back.
Now again all of this depends on the contract that I can not see, nor am I a party too. So all I or anyone else can do is give you general advice. The best of which is consult with your Realtor, even though you think he/she was an idiot, they are there to help you and work on your behalf. If that is unsuccessful call the title company or the broker for the Realtor that you worked with. And when all else fails contact a real estate attorney. Everything in your contract will stipulate what happens with that earnest deposit and your question/explaination is to limiting to give much more advice that this.
Best of luck
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