Will I lose my earnest and down payment?

Asked by erinijolly, Las Vegas, NV Mon Jul 9, 2012

I purchased a new build home in Nevada and am now having buyer's remorse. I know I will more than likely lose my earnest deposit (the contract is pretty solid), but the mortgage company asked for the downpayment early. Will I lose that money as well. I haven't decided what I am going to do yet, but I want to know all of my options before I make a decision.

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8
David Cooper, Agent, Los Angeles, CA
Tue Jul 10, 2012
How much was the down payment to the mortgage company? What did they say when you told them you wanted it back? A real estate lawyer might be able to challange that depoisit and get you some money back.


David Cooper Investor and Licensed Buyers Agent 702-499-7037
1 vote
Mark Fleysher, Agent, Las Vegas, NV
Tue Jul 10, 2012
Hello Erin,

Since you have not closed escrow yet, your down payment for the mortgage should be held with escrow, until closing... if you do not record, that money will be returned to you.

I am not an attorney and this is not legal advice.

There are several ways to get your earnest money back, here are a few ideas for you:

1. Review your contract for ways out

2. When you receive the HOA / CIC Document Package, you have a given time to review these documents; if you do not agree with any one of these documents, rules, regulations, etc., you can cancel the agreement, and give them this reason: "I do not agree to the CIC Rules and Regulations". This works if you do it within a certain amount of time of receiving the package.

3. You have until the end of your due-diligence period to cancel based on your dis-satisfaction with the condition of the property; you don't even have to say why.

4. Now, this isn't really moral, and it's not recommended, but... if you don't qualify for financing, or fund by close of escrow date, you don't need to extend escrow, and you can cancel, saying you were unable to satisfy the lending condition prior to your COE date... which is a major contingency of your purchase.


I hope this helps!


--

Sincerely,

Mark Fleysher, MBA, Broker
Soon to be: Sellstate Signature Realty
http://www.sellstatesignature.com
The Jack Conley Realty Group
C. 702-291-8186, F. 702-946-0843
http://www.jackconleyrealty.com
0 votes
Melvin Swan, Agent, Las Vegas, NV
Tue Jul 10, 2012
Another thing you may want to check into is Realtor and or Broker fees.
0 votes
erinijolly, Home Buyer, Las Vegas, NV
Tue Jul 10, 2012
Thanks for the advice so far. I am about two weeks out from closing and the house hasn't been released. As the house got closer to being finished, I realized it wasn't the house for me. I do have to agree that there are great deals on new houses and the market is so crazy right now. It may be threw only way to really get one. I just realized that I was buying because it was a good time to buy and not because I loved the house. I am calling my realtor to back out today but wanted to see if I could get the down payment back from title. My earnest and flooring deposit I will just have to think of as an expensive lesson learneed.
0 votes
Melvin Swan, Agent, Las Vegas, NV
Tue Jul 10, 2012
Without knowing what you have agreed to in your signed purchase agreement or at which stage in the purchase you are currently at. I cannot give you an answer as to what funds you will or will not lose should you back out of your purchase contract. I would recommend that you go through your contract and write down as many question as you can, also write down the time frame of the different documents that you have signed during the purchase process thus far. Then gather all of the documents that you have, and schedule a consultation for legal advice.
Because not all of the purchase contracts are the same it is always best to have an agent involved that is watching out for your best interest.

Make every day the best it can be!

Melvin Swan, First Prime Realty Group
6542mel@gmail.com
0 votes
Myra Gouger, Agent, Las Vegas, NV
Tue Jul 10, 2012
It depends where you are in the buying process. If it is a few days before closing and the builder has delivered the home to you, you're likely going to lose your full deposit. Also, if you put in a lot of custom options, builders usually ask for 10% of these options to be paid upfront. You usually will lose your deposit on these options as the builder feels they are custom for you. On the other hand, if you chose the property and the home only a few days ago, then you might get everything back from the builder as they may have started no construction as yet. If you have a medical problem, lost your job or can't qualify for a mortgage, you likely would get your deposit back but possibly not your options deposit. You would have to show proof of these problems to get your money refunded by the builder. Changing your mind because of "cold feet" is not a valid reason (in my opinion) for any builder to return your deposits.

If, by changing your mind, you think you are going to find a less expensive resale home - think again. There are few homes available and many foreclosure homes need $20-$30,000 to fix them up so that they are "habitable.". Builder homes right now are a bargain. Think your decision carefully before trying to get out of the contract.
0 votes
Suzie Marqua…, Agent, Las Vegas, NV
Tue Jul 10, 2012
There are some factors that may help. Being that it is a new home you have not seen the Covenant Coditions and Restrictions ( CC&R's) is it possible that you have after investigation of Home Owners Associations that you could not live in that type of community? Buyers remorse sometimes goes away. It is a common occurrence. You may want to really evaluate the home and weigh out the positives and negatives and make sure you are making the correct decision. You stand to lose your earnest money if you just change your mind. I do not think you would lose your downpayment. I would seek legal advise on the downpayment refund. The market conditions may help with your decision also. There is not much available inventory on the market right now and most homes are selling at over list price in a bidding frenzy. Also in my opinion you should always have the representation of a Realtor when purchasing in a New Home Community. I hope my answer will help. I am always available if you want to talk.
Thank You
Suzie Marquardt
SuzieM@RealtyOneLV.com
0 votes
Rhonda Brink…, Agent, Las Vegas, NV
Mon Jul 9, 2012
Hi, you will not lose the down payment and you may not loose the EMD if you talk to them. Its worth a try, everything is negotiable in real estate. If you need a home I will be very happy to help you. Please contact me at Rhondasellsvegas@gmail.com or 702-239-6900.
0 votes
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