State: California
Hello,
Here is the scenario. The prospect and seller signed on the deal. The prospect needed to qualify for the loan PRIOR to the closing. The prospect made a deposit and told the seller he will be ready within 40 days.
The first loan request was rejected because of low down payment.
The second loan request was also rejected.
Forty days has past.
The seller does not want to continue with the sales because he lost two months of possible rent income due to the waiting.
So who keeps the deposit money?
The prospect said 40 days. The deposit is held at the escrow company. Thank you inadvance.
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Thread: Who claims the deposit money?
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07-07-2005 11:17 PM #1
- Join Date
- Apr 2005
- Posts
- 32
Who claims the deposit money?
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07-08-2005 08:00 AM #2
- Join Date
- Oct 2004
- Location
- Florida
- Posts
- 2,132
Re: Who claims the deposit money?
If there is a contingency on financing the seller can not make a claim on the escrow.
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07-08-2005 09:05 AM #3
- Join Date
- Jan 2005
- Location
- Orland Park/Homer Glen
- Posts
- 3,345
Re: Who claims the deposit money?
Our contracts in Northern IL have a built-in financing contingency stating that the buyer gets the earnest money deposit back if they cannot qualify for the mortgage. They have to apply & provide all paperwork necessary - IOW they have to diligently try to get the financing.
Money Magazine says that Orland Park real estate is one of the best places to live in the U.S. Check out Homer Glen homes if you're interested in living in the newest Chicago suburb. Next door, Lemont homes are the priciest in the southwest suburbs and have held their value, even appreciating while prices in other areas have gone down.
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