Home Buying in 91007>Question Details

Richardchao, Home Buyer in 91007

can i still get my earnest money deposit back even i have removed loan contingency before the lender denies my loan?

Asked by Richardchao, 91007 Tue Feb 16, 2010

lender kept saying it was going to fund but need more time and finally the loan did not get approved.

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9
Richard Littlefield, Mortgage Broker or Lender, Orange County, CA
Well probably not, but you may have another way to do it. California law allows you to withdraw anytime you find out any previously undisclosed information. So if they even hand you a title policy you can use it to back out. So you really want to find another way out.

Of course, all of this really sucks though. Why should you have to sneak around because the lender did not fund your loan? Give me a call let's see if I can fund it for you. I close very quickly.

It is too bad these lenders are not held accountable for this type thing.

You should contact me as soon as you can. My phone number is 949-297-1207.
0 votes Thank Flag Link Tue Oct 29, 2013
Hi Richardchao,

Your question was duplicated on our site and you can thus find additional answers to your question at the link below.

Best Wishes,

Emily Gibson
Community Moderator
0 votes Thank Flag Link Wed Feb 17, 2010
Why was your loan denied?

Why did you release your loan contingency? Did you have an appraisal contingency? Did you release that contingency? If so, why?

Were you advised to release these contingencies? By whom?
0 votes Thank Flag Link Tue Feb 16, 2010
Just curious - there is another question similar to yours currently on trulia.........my question was the same to the other gentleman.....why did you remove your contingency without having a written commitment?

I know you said the lender "said it was going to fund", but apparently, you never got that in writing.
Do you have an agent? Did your agent advise you to remove the contingency prematurely?

As was mentioned..........you need to speak to a real estate attorney right away.
0 votes Thank Flag Link Tue Feb 16, 2010
Hello Richard,

If all your contingencies are removed you are possibly going to lose your deposit. Check with your agent and see what contingencies (I am hoping) you have still left. If it's FHA you may still have some other options but I can't comment without seeing the paperwork so ask you agent and a big good luck to you :)

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
0 votes Thank Flag Link Tue Feb 16, 2010
Richard,

Meet with your agent and broker and review your contract. They should be helping you to find a solution.
Understanding why the loan was not approved may help resolve the situation.

Good luck.
CJ
Web Reference: http://www.TalkToCJ.com
0 votes Thank Flag Link Tue Feb 16, 2010
Richardchao
I would bring contract in hand to a real estate attorney ASAP.
Harold Sharpe
So Cal Homes Realty
(951) 821-8211

http://www.socalhomesrealestate.com
0 votes Thank Flag Link Tue Feb 16, 2010
There are a lot of ways to get a deposit back, it depends on all the details of the contract. If your agent isn't competent enough to advise you then you should spend a little money to consult with any attorney (and then find a new agent).

Definitely play hardball though, don't just sign off on giving up your deposit. Most people think that just because the liquidated damages provision is initialed that they loose their deposit. Not the case. Those provisions are hard to enforce and most people would rather negotiate than litigate. The escrow company can't distribute the funds on deposits without either both parties signatures or a court order.

Get yourself some capable representation and see what you can work out.

Hope this helps
0 votes Thank Flag Link Tue Feb 16, 2010
No one can render an opinion UNLESS entire executed sales contract is reviewed. All is goverened by those terms and conditions

Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Feb 16, 2010
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