can I get sued by the seller if the bank turn down my loan?

Answer 1

NO

Answer 2

Probably not. So long as you made a whole-hearted effort to get a loan and were honest and upfront with the lender, your contract probably allowed for cancelation if you were denied a mortgage. But if you were dishonest - for example, claimed to have a 20% down payment but had no money at all - or did not really try very hard to get financing, you might lose your earnest money.

But the situation you described happens all the time. And almost all the time, escrow is returned and the home goes back on the open market.

Answer 3

If you're working with a Realtor, your Offer to Purchase should include a statement that you must qualify for a loan at a certain loan amount and interest, otherwise you can cancel the agreement and receive your deposit money back. There is no room for a lawsuit unless you've been dishonest on any other part of the contract.

Answer 4

he's being a dic. not the perfect undertaking to be in. coach no emotional smash-down right here, shop each and every scrap of paper you acquire with regard to the sale of the bike. enable the courts be sure. it quite is going to likely be what it quite is going to likely be. it quite is unlucky he did not understand approximately your huge acquaintances (i'm searching for blood now - yet it quite is in simple terms me) often it could artwork this sort, you % some thing from me-you pay thoroughly for it after which you get the call, key and the bike. he's not a economic enterprise so it does not be on money. so which you style of left him putting as he nevertheless owed $one thousand on the economic enterprise mortgage. So, i assume he's PO with you by using fact the great theory of merchandising the bike replaced into to repay the $1500 economic enterprise mortgage.. Deal is finished and you're out of each and every others existence. His or his spouse's call is beside the point-nevertheless the comparable kin. regardless of the undeniable fact that it quite is "his spouse" that has possession of the call, not him. so which you would be coping with the spouse purely as he has no say. tremendously particular a decide is gonna see it that way.

Answer 5

probably not. but it depends on what your sales contract states. most standard, attorney and real estate board approved contracts' mortgage contingencies state that if you are not approved to get the mortgage (at the amount, rate of interest, up to x points, and amortized for z years), or, if you allowed for a balloon payment (where you pay $x for so many years, usually at reduced interest, then pay off the total amount of principal at the end of--usually--7 years), then, in that case, either the listing broker and/or the seller can try to obtain the same type of mortgage for you. you would have to pay for your credit report again, as well as fill out all mortgage documents with the lender that they found for you to fulfill your obligation to purchase.

then these standardized contracts go on to state, within the mortgage contingency, that if you, or the broker, or the seller all cannot get that mortgage, that the earnest money will be returned to you and that the seller is no longer obligated to sell to you.

you would have to put your request for return of earnest money into letter format and mail it (use this, not certified) by registered mail to the seller's agent, or to his attorney (only if the contract says to). the release of earnest money letter must be signed by you, and by the seller. it wouldn't be stupid for you to have your signature notarized, either.

these contracts go on to further state that if there is a dispute over distribution of earnest money, usually, your earnest money will first pay the listing broker its commission, with the balance to go to the seller. or, in illinois i like it better because what we do is to file an "interpleader" in circuit court so that a judge determines what happens to the earnest money.

however, when all avenues of obtaining a mortgage are exhausted, normally there is no dispute over the earnest money and you will get all of it back. but, if the judge sees that the broker tied up a lot of time and expenses into marketing the property, she might award part of your earnest money to that broker.

gee, i sure hope you have a buyer's broker! you should never, ever be alone as a buyer. you don't have to pay a buyer's broker, but one is encharged with "agency" to you, meaning fiduciary responsibility to her client, meaning loyalty.

if a buyer dies, he cannot perform on the contract, therefore, his contract is null and void. however, if the seller dies, the estate of the seller still has to sell you the real estate under the terms of the contract.

please read your papers. if you need help, call a real estate attorney immediately.

i hope you get it resolved!

Answer 6

If you've worked with a licensed real estate agent, and used pre-printed approved forms, you're likely to have a clause in your contract saying effectively, if you can't get a loan through no fault of your own, you don't have to buy the property and any earnest money will be returned to you. Check your contract and speak with your agent or your agent's broker to be sure.

Answer 7

Depends on if the contract was contingient on you obtaining suitable housing.
I hope you have a Realtor who helped you fill out the contract properly.
If not you could lose your deposit.
Remax Realtor

Answer 8

Look at your purchase contract... it should have language in there that if you cannot obtain financing thru your best efforts, than the contract shall be deemed null & void.

At least in my state contracts read that way!

Good luck!

Answer 9

No, not if you complied with your contract which would normally stipulate that earnestly attempt to obtain financing as described on the contract