My lender might not be able to close my deal on time. If they cant close on time can i still get my down payment back? Seller wont approve extention

Asked by Fnoclaf1, Indio, CA Sat Sep 22, 2012

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Vlado, Home Buyer, La Quinta, CA
Sun Oct 21, 2012
Yes you can get your down payment back if you have that in your contract.

Best of luck,


0 votes
Fnoclaf1, Home Buyer, Indio, CA
Mon Oct 8, 2012
Thank you everyone for your advice! We funded and recorded on Friday! That was last day of extension.
0 votes
Flag Mon Oct 8, 2012
Soila Thomps…, Agent, San Diego, CA
Sat Oct 6, 2012
Check your purchase agreement - I could write more on the subject of using a BUYERS' AGENT but, I digress. - See @ the loan contingency on your PA.

Thanks, I hope that helps,

Soila Thompson
Buyers' Agent
0 votes
Marvin Harri…, Home Buyer, Indio, CA
Mon Oct 1, 2012
It also depends on if you agreed to your deposit as liquidated damages. If they won't extend or give it back then talk to an attorney, not just your realtor.
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John Juarez, Agent, Fremont, CA
Sun Sep 23, 2012
Your story is way too frequently heard. Lenders are routinely running late in closing loans. I just went through that experience with one of my clients. I hope those who are reading about your experience are taking note and will negotiate appropriately on behalf of their buyers.
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Steve Kass, Agent, Indio, CA
Sun Sep 23, 2012
One last thing, you might want to check with your lender to see if there are any funding conditions. Sometimes the underwriter will come up with a few last minute conditions. usually they are minor such as a clarification on your taxes or an additional document they need from you, but sometimes funding conditions can delay the closing. Just something you might want to check on so there are no last minute surprises.
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Fnoclaf1, Home Buyer, Indio, CA
Sun Sep 23, 2012
Thank you everyone. They have already approve 2 extensions. We have until the 28th to get closed. I guess it is final steps of underwriting, and then to FHA for approval. I am being told that they "should " close in time. But I am still concerned because they put us through to underwriting before my offer was even accepted to get a faster close. My banker has been great, but I am still worried.
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Devona Garri…, , Beaumont, CA
Sun Sep 23, 2012
Stephen Kass below does a great job answering this question. And your Realtor should try to negotiate this.
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Steve Kass, Agent, Indio, CA
Sun Sep 23, 2012
If you checked the box on the RPA that the loan contingency remains in affect until funded than you should be OK. It is not unusual for lenders to run late. Most times sellers understand this and will grant an extension. Seems like the seller might be trying to get out of the deal. This question should be brought up with your realtor. Let him or her negotiate a resolution to the issue.
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Cindy Davis, Agent, San Diego, CA
Sun Sep 23, 2012
Wow...that sucks. It is not uncommon for lenders to run late...and in my experience, most sellers understand this. Have you had your lender as well as your Realtor try to negotiate this for you?

You might try offering the seller a late San Diego, $100 a day is common...and then go after your lender to pay it.

If you have removed contingencies, you will not get your deposit back. You're caught between a rock and a hard spot!

Best of luck in this tough situation.
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Shanna Rogers, Agent, Murrieta, CA
Sat Sep 22, 2012
Hi Fnoclaf1,

If you mean your earnest money deposit (not your down payment), you should be able to get it back as long as your loan contingency has NOT been removed in writing.

Shanna Rogers
SR Realty
0 votes
I have already given them 3.5% down pament. It's an FHA loan, and my bank has had many issues with processing it and FHA is taking forever to review. I am being told that if they cant close on time because the seller has already signed 2 extensions and wont approve another that I will lose the house and my down
Flag Sat Sep 22, 2012
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