my buyers asked for 4 extensions and they still backed out- the lawyer says I can't keep their deposit

Asked by jl-mtz, Everett, MA Tue Jan 8, 2013

how can that be possible- my broker told me to move everything out of my house because it had to be emptied at the closing. I had all my furniture in a truck for 5 days because the buyers keepted asking for extension- they still backed out and I had to move into my house again after spending all this money- what can I do?

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7
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Tue Jan 8, 2013
It really depends on the reason why the loan was denied. If they didn't have enough assets for example, then sellers could keep the deposit. Depends!
1 vote
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Tue Jan 8, 2013
Sorry to hear that. I'm not sure exactly what went wrong, but there is no way that you should have been asked to move all your stuff out before actually having a clear to close from the buyer's bank. Something definitely went wrong. If your attorney said you cannot keep their down payment, that most likely means the buyers never obtained a commitment from their lender. Four extensions means you were jammed up for MONTHS, without a commitment? Who was looking into this for you? Someone didn't do their job.

Your agent should have been all over it, considering that there were 4 extensions. One extension is usually a red flag. One extension usually means that there is a problem somewhere. Your agent and/or attorney should have found the problem way before it got to a 2nd extension. Obviously the reason for why there was a 1st extension somehow lead to a 2nd, 3rd, 4th and finally a dead deal. Would of been more efficient to find out what the problem was from the very 1st extension.

I suggest you fire them and find a Realtor who is capable of putting a solid deal together so that this doesn't happen again. An agent should do all possible to make sure the buyers are indeed qualified before you're put into a contract that'll tie you up for months. Your agent should also be capable of following up with the loan officer, attorneys and all parties involved, to make sure that deal is moving along smoothly. It's what I would do!
1 vote
Travis Jacks…, Agent, Campbell, CA
Tue Jan 8, 2013
If you are looking to use another broker, I can recommend a top agent in the Everett, MA area. Send your contact info (phone, address) to Tjackson@c21mm.com

Travis Jackson
Century 21 M & M Associates
DRE#01879566 http://www.408RealEstate.com
tjackson@c21mm.com
(408) 316-5954
0 votes
Gail Gladsto…, Agent, 11743, NY
Tue Jan 8, 2013
. The typical contract calls for the buyer to lose its deposit if they default.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Jan 8, 2013
Was their loan denied...if not, consult with another attorney who specializes in real estate, most professionals do offer a free consultation....
0 votes
Linda Lorenzo, Agent, McKinney, TX
Tue Jan 8, 2013
Not sure why you are not getting the earnest money deposit? An extension does not mean that the financing contingency (I assume there is one) has been extended just the time for closing. You definitely need another opinion - your broker should have access to legal counsel as well as the title company. Good luck.
0 votes
Gail Gladsto…, Agent, 11743, NY
Tue Jan 8, 2013
Please call another attorney. I am not an attorney, but have had similar situations and they did not result in what your attorney is stating.

It does not hurt to consult with someone else.

I recommend calling Darren Sheehan at 631-659-3377 or email darren@darrenesheehanlaw.com for another opinion.

gail@GladstoneGroupRealty.com
631-425-6150
0 votes
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