Escrow Problem

**tommyb82000** · 10-29-2007, 02:21 PM

Ok, here's the situation:
I put an offer on a house that had a 3rd party contingency (it was a short sale) where the seller had an equity loan of $96,000. We extended it to 45 days for closing because of this, which was ok for me. Well, 45 days later, the seller could not come up with financing. He tried to extend closing another 2 weeks but I just signed the cancellation forms. I sent him the release forms, and a week and a half later now I still don't have my escrow deposit. On top of that, he said he is having his lawyer look it over. What can I do to get my escrow money back? Am I going to have to pay $2k because this guy backed himself into a financial hole? Any comments would be greatly appreciated.
Thanks,
Tommy

**Mike Taylor** · 10-30-2007, 03:36 AM

Tommy-

Every state will have their own strict rules and regulations regarding escrow money. From the situation you described, it sounds like you are 100% entitled to your money back. Before I go too much further let me ask you a couple of questions. Who is holding the escrow money? This is very important to know. Did you use an agent?

**tommyb82000** · 10-30-2007, 05:26 AM

Mike,

Thanks so much for the reply. I agree with you, I am entitled to the money... the seller dropped the ball here. I think he might be playing some kind of power game.

We used a Title Company to hold the escrow, so no problems there. This took place in Florida; do you have any suggestions as to where I can look to find laws on escrow?

A co-worker of mine told me one of my options is to get a collections agency involved, and charge him interest. I don't want to be jerk about it, but if he isn't going to pay me then maybe I do.

Thanks again,

Tommy

**Mike Taylor** · 10-30-2007, 05:39 AM

Tommy -

I used to be a real estate agent in Florida so I am familiar with their laws. That being said, it has been a few years so things could have changed. My understanding of it is when a title company holds the escrow you now fall under regular contract law. If you did this through an agent's escrow account it would fall under the real estate commission and you would have a more speedy remedy with an escrow dispersement order.
Since it is in a title company, the title company should not release the money to anyone without all parties agreeing. If the seller will not agree to release the money back to you, I think you will have to bring legal action against him.

Talk to the title company and see what they suggest. Then you will probably have to consult an attorney.