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.

If there is a contingency on financing the seller can not make a claim on the escrow.

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.

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Southwest Chicago Suburbs Real Estate is an affordable area with close access to downtown Chicago. Money Magazine says that Orland Park real estate is one of the best places to live in the U.S.