We made a earnest money deposit on a house from a particular builder but we could not get approved for a loan.

Asked by Sshetty, Houston, TX Wed Feb 4, 2009

Now the builder is declaring bankruptcy & says they do not have funds to refund our deposit . IS there any way we can get our money back ?

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Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Wed Feb 4, 2009
They may have deposited the earnest money with title company.
If you don't have a realtor, GET ONE!!! And hurry
0 votes
Jill Wente, Agent, Spring, TX
Wed Feb 4, 2009
If the builder had NOT declared bankruptcy and the contract you signed had a financing contingency clause in it, then yes your earnest money should be refunded. But in your scenerio you mentioned the builder has declared bankruptcy which puts you standing in line for funds from the builder along with all of the other builders creditors.

You can contact a real estate attorney to file suit against the builder on your behalf. But I would not get your hopes up on having your earnest money refunded.
Web Reference:  http://jillwente.com
0 votes
Liege Garcia,…, , Chula Vista, CA
Wed Feb 4, 2009
Check on your contract if you have a conditional loan clause. If your Realtor had marked the clause, you are still entitled to get your deposit back. All my contracts have an appraisal and conditonal loan clauses.

Liege Garcia, ABR, CNRN, e-Pro
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