HELP! Getting Back My Earnest Money.

**Kenta** · 04-08-2010, 12:51 PM

Hello,

I was recently in the process of buying a home via FHA. I had all the typical clauses in the contract including the finance clause. Unfortunately, I was running into some problems getting financing because my parents are co-signers and they own their own business with multiple bank accounts. Anyways, long story short I got an initial denial from my independent mortgage broker and decided to turn to a wells-fargo loan officer who's REALLY good (president club member).

During this process we had to keep extending the closing date and ended up releasing the earnest money to the sellers as a stipulation of the extensions. I did this with the knowledge that should I not get financed this should technically be returned. As you can imagine, I ended up getting denied and am now in the process of trying to get back my deposit.

I've sent a letter rescinding my offer due to unfinancibility with a copy of denial from both wells-fargo and the independent broker to the seller's agent, broker, and escrow. I have also provided a copy of bank statements showing the available funds to make the rest of the down payment. As of now, I have yet to receive a response from the seller's agent and I'm guessing they're hoping that if they don't respond I'll just go away.

So my questions are:

- Am I in the right and should I get the money back?
- How long should I wait to hear back?
- Is there another tactic I should be taking?
- Will escrow and arbitration be necessary?

I'm also dreading to have to escalate this to the last level by sueing the seller for a return of deposit. Also, there is the possibility that they have a REALLY good lawyer and I lose for whatever reason.

Anyways, I apologize for the essay that I have written. I just felt that some background might be necessary to provide the most accurate answers. I welcome any and all advice/comments that might help me out. Thank you for your time and consideration.

Kind Regards,

Kenta

**maui** · 04-10-2010, 02:24 AM

Kenta,

Did you have a buyer's representative or did you deal directly with the listing agent? If you dealt with the listing agent, were you his client or his customer (big difference when it comes to agency)? Can you be more specific as to the financial contingencies of the purchase contract? Did you have something in writing that made you think that the money would be returned to you, if you failed to get financing? Sorry for all the questions, but we need answers before being able to provide you with proper advice.

**Kenta** · 04-12-2010, 08:06 AM

Hello,

Thanks for the interest and response. And please do not feel the need to apologize, I am the one receiving help. So, here are the answers (to the best of my knowledge) to your questions:

-Yes, I have a realtor that has been helping me out.

-I'm not too sure on the specifics, but the clause did state that should there be a denial in the financing that the deposit is to be returned.

One thing that might be a problem was when we sent the rescinding letter, we might have been passed the said closing date. Should this be a point of concern? Once again, thank you for taking the time to hep me out.

Kind Regards,

Kenta

**FriendyAnil** · 05-19-2010, 01:30 PM

Sometimes a surveyor also measures things in your neighbors yard to get exact points. A flag by itself without seeing the plot may not tell you the whole story.

A short sale is not between you and the bank. It is between you and the owner and the owners bank is forgiving the owners shortfall.

the lawyer that represents your interest is the one that can help you here because the answer is based on what the survey says and what your contract says.