I paid $2000 earnest money my closing date passed. Financing didnt go thru. Seller only wants to return $1500 of the money. How can get all my money?

Asked by Beaawynner, 30088 Wed May 30, 2012

The loan officer at Bank of America was fired 2 days before I was to close. My loan was subsequently denied by the Operations Manager. I believe there was some deceitfulness in the paperwork between Loan Officer, Seller and Appraiser.

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10
Teta L. Jack…, Agent, East Point, GA
Thu Jun 7, 2012
First and most important question... Did you have a Realtor representing you? If so, they should have placed certain contingencies (financing, loan, due diligence) in your contract that would have protected your earnest money. Unfortunately, all contingencies have expiration dates. If you did not close by those dates, then the seller has the right to keep some or all of your earnest money. Your Realtor should be able to go over the contract with you and help you to understand what contingencies were in place, passed and current that could protect or cause you to forfeit earnest money.
0 votes
Darrell Hess, Agent, Asheville, NC
Fri Jun 1, 2012
Without seeing the contract and without being your agent we can't help here. Sounds to me you had folks interested in getting a paycheck and less on looking out for your interests here. In the end whomever is holding the earnest money is who decides when and to who it gets released to. After that your looking at going to court and that is going to cost more than 2k I'm sure.
0 votes
Jean-Claude…, Agent, Smyrna, GA
Thu May 31, 2012
Seems like your loan would not have gone through whether the loan officer was there or not. If as you state, closing date passed and financing did not go through. You had no loan commitment before closing & obviously your financing contingency expired (If your agent put one in the contract) Was your Agent diligently following up with the loan officer for loan commitment prior to closing. To be totally objective the seller owes you nothing, not to be rude. But at the same time your representation should have seen all of the red flags the day your financing contingency expired.
Web Reference:  http://www.luxuryatl.net
0 votes
Latisha Thom…, Agent, Atlanta, GA
Thu May 31, 2012
YES, IF YOUR AGENT DID NOT TERMINATE THE AGREEMENT DUE TO FINANCE, NORMALLY DONT GET ANYTHING BACK, BE THANKFUL FOR THE $1500, YES I THINK YOU SHOULD TRY A DIFFERENT LENDER, CALL IRIS AT DIMENSION MORTGAGE, SHE A VERY GOOD LOAN OFFICE AND BEEN IN BUSINESS OVER 20YRS AND STILL AROUND AFTER ALL THE MOM AND POPS BROKERAGE CLOSE DOWN WHEN THE MARKET CRASH.

IRIS 404-7688882... I USE HER FOR ALL MY DEALS OVER 50K AND STARKEY MORTGAGE RANDY LIPP 7707131662
0 votes
I did not have a finance contigency...at least it's not in my contract. According to the agreement, it says that the earnest money could be returned if there was no closing.
Flag Thu May 31, 2012
Thank you Latisha....I called Randy. He is going to thank you. :)
Flag Thu May 31, 2012
, ,
Wed May 30, 2012
Why don't you follow through and buy it using a different lender? You've gone this far.
0 votes
Hank Miller, Agent, Alpharetta, GA
Wed May 30, 2012
This is an agent question, too much info is missing. I'd go to the managing broker and ask for guideance. It is likely to come down to how the contract was written - specifically the financing contingency.

As Bruce mentioned, might be best to walk and eat the 500

Hank
0 votes
Tatia Olds, , Atlanta, GA
Wed May 30, 2012
Did you have a finance contingency with your offer. If you or your agent submitted a Termination & Release prior to the expiration of the Finance Contingency along with a denial letter from your lender, then you would be entitled to all of your earnest money back. If not then your good to get back the $1500. However, you can refuse and if you have done all of the first portion of my response, you can go to mediation and most likely receive all of your earnest money. If you did not have a finance contingency or if you did not meet the terms of the contingency then you could lose it all.


Thank You In Advance

TATIA L. OLDS - REO's, & Short Sale Specialist
Atlantic & Pacific Real Estate US Llc..
2078 Teron Trace. Ste 250
Dacula, GA 30019
O 678-804-6104
D 678-697-5119
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http://www.AtlantaLiving.GeorgiaMLS.com
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If you or anyone you know is interested in Buying, Selling, or Leasing, Relocating, or Investing, to or from, in or out the state of GA, it would be our pleasure to help. Please forward their contact information ( telephone, cell, and/or e-mail address) to us so that we may be of assistance. My staff and I will take perfect care of you and your referrals. THANK YOU IN ADVANCE~~~
0 votes
Bruce Ailion, Agent, Marietta, GA
Wed May 30, 2012
Your question is to complex to answer without more detail. The newer contracts have shorter financing contingencies and if the contingency expired prior to approval, termination or extension you may not be entitled to any refund. You should have an agent representing you who can assist you. Hiring an attorney will cost more than $500. Threaten to sue or hire an attorney and you may get all your money. Finding out what you are entitled to would help and based on your statement not enough information is present to determine.

Bruce
0 votes
Vennitta Tor…, Agent, Douglasville, GA
Wed May 30, 2012
Do u have an agent?if so they need to submit a termintion and relaese to getur earnest money along with ur denIal letter because this is beyond ur control for the lloan denial and if nessary get ur agent broker involed if u don't have an agent this is not recomended to buy house with out repersention.it is risky business if this is true and he don't want to give ur money back u will need to take him small claims and sue to get all ur money back good luck before buying a house get a realtor
0 votes
, ,
Wed May 30, 2012
You would need to consult with your Buyer's Agent. Only they will know the terms of your contract under which you might be entitled to a refund of your earnest money.

Only an Underwritier can approve or deny a loan. An Operations Manager only supervises. When a loan is denied, you will be sent an official denial letter listing the reason(s).

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes
Thank you everyone for your response. I plan to go to small claims court. My purchase agreement states that I'm entitled to my earnest money back failure of the parties to enter into a binding agreement (2) failure of any contigency or condition to which this Agreement is subject (3) termination of this Agreement due to the default of Seller or (4) termination of this Agreement in accordance with a specific right to terminate set forth in the Agreement. Otherwise, the earnest money shall be applied towards the purchase price of the Property at closing or if other funds are used to pay the purchase price then the earnest money shall be returned to the Buyer.

I never closed on this home. The Seller and Loan Officer (before he was fired) kept moving the closing date.
Flag Wed May 30, 2012
The Underwriter initially called to say "oh we need to do another appraisal, we will eat the cost because of the loan officer 'error' " I also have been sent a letter from the Bank.
Flag Wed May 30, 2012
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