The house i was buying needed to many repairs, and now the owner doesnt want to give my escrow back.Any ideas?

Question

I was purchasing a home, We set up the escrow on a good faith judgement. Our home inspector told US, that the repairs where major. The clause "was anything over 1000 dollars " We could back out.. We did. Now the owners wont give US our money back.. Any idea? They already sold the house to someone else. AND WONT STILL SIGN OFF. This is a legal document. A good faith escrow. Any ideas? I have called months now.and still nothing. Ive been told this happens alot. and sometimes the money sits in accounts for years. THIS IS WRONG! what laws protect the buyer. and why did we have a good faith document.But On the end of the buyers there is no timelimit. Im upset. and want my money back! Help help help.
P.S. Ive been told that I might be able to get my home inspection back on failure to disclose. "they knew the house needed major repairs!" A Insured inspector, our realtor, and bank told us not to buy it. Now we cant get the money back!

This was between a real estate office and another one. both of us had realtors . the money is in a third party bank. The escrow was a good faith escrow to buy. They already sold . The repairs where over the 1000 dollars. So we had a right to cancel.. This is in NY state ,watertown NY.Our real estate office has said there is nothing they can do...

Answer 1

Depending on how the contract was worded, yes you should get your escrow money back. Why isn't your realtor helping you? I suggest you seek the advice of a real estate attorney. You might consider reporting your realtor to the local association...

Rick Lanicek
http://www.primelendingonline.com

Answer 2

Does the contract clearly state that the deposit will be refunded if the sale is cancelled? Does the inspection contigency state a similar wording? Did you use a realtor? If not, why, and if you did and this wasn't put into the contract, I would suggest you talk to that agents broker right away. Otherwise, if you've pursued this sale on your own without assistance from a realtor or an attorney, now what you may need is the attorney. Understand this, he may not be able to sell that property until he resolves your issue. Laws are different in each state.

Answer 3

My husband and I are wanting to save up for a year and put the money we save together with our taxes and buy a house. Our credit isnt that good right now but we're going to spend the next year trying to repair it and since we dont have any other bills or credit cards other than basic household bills it should be easy. The cost for a pretty good house around here is about $90,000. He makes $30,000 a year (I stay home and take care of our baby). How much will we need to put down and what should our credit score be? You can still get loans for 0% down, but your credit will have to be fairly high, 730 or above. If you can come up with 20% down just about any lender will give you a loan regardless of credit score. You will also get out of having to pay PMI (private mortgae insurance) on a new loan. Is there a way to boost our credit score after everything is off of it (mainly we just medical bills)? The easiest way is eliminate unsecured debt. i.e. credit cards, student loans, medical bills. Secured debt will not damage credit as bad because it is viewed as collateral. And whats the deal with a first time buyers thing? First time home buyers has become a thing of the past. There are a few banks still offering it, but big lenders like Citi or Wells dont offer these loans any longer. Also my husband used to be in the army and I heard that could help us get a loan to...is that true? Yes, and in some areas reduce property taxes.

Answer 4

I am assuming this was a for sale by owner. Proof that an agent is a worthy tool in a real estate transaction. If they sold the house but did not sign a release of contract and deposit with you then they broke the law and you can sue them for breach of contract. Any lawyer that gets paid when the property settles will take this on for you. See lawyer advice. Was the contract "as is" ? You mentioned your agent, they should be assisting you more with this. But if you agreed to as is condition and put up a non-refundable deposit and then found out the extent of repairs needed and wanted to withdrawl, you might be in the wrong.

Answer 5

first have your inspection report in hand outlining that repairs are over 1K back out, second hope the monies deposit in escrow is under the small claims amount,

tomorrow go down to local court house with a copy of the escrow documentation stating the back out clause, copy of inspection report outlining the repairs over 1, then file in small claims

a letter from lawyer does nothing

Answer 6

check your contract closely, Is it the Seller or the Buyer who has the right to cancel the contract. Usually it is the Seller. Also try filing a complaint with the NY State Realtor Board.

Answer 7

You had to make the contract contingent upon repairs that needed to be completed. I know our check went to the attorney for escrow not the buyers. Who did you make the check out to? It should have been handled by an attorney not the sellers.

Answer 8

If what you say is correct then yes you are protected. However the unfortunate part is that you will need to get an attorney to assert your rights under contract law and possibly fraud and misrepresentation. Through your attorney you can sure make that seller pay, including the possibility of upsetting the seller's resale.
Buena Suerte

Answer 9

as long as he is holding your escrow, you have the right to file a lien against the property in question since your good faith escrow was for purchase of that property ... you can then demand payment from the new owners to satisfy the lien

Answer 10

Get a lawyer to send a menacing letter on his or her firms letterhead. That usually does the trick.

Good luck