Can I get the buyer's to release their ernest $$ on the house even though they are still buying it?

Question

We were supposed to close on the sell of our house on 3/26, but due to the buyer's mortgage company it has been postponed until who knows when. Now that the 1st of the month has come another month's mort is due and we will be responsible for 100% of the interest since it's an FHA loan. Is there any legal way to get the buyer's to forfeit their ernest money since they did not close on their contracted closing date?

Answer 1

You will have to read the contract very carefully, but probably no. The buyers did nothing to hinder or slow the sale. They have followed the letter and the intent of the law. This is one of those things that your realtor should have included in the sales contract.

Answer 2

Real estate laws vary by state. You should check with your attorney on that one, or carefully read the section of the contract detailling what the earnest money covers I had a similar experience on a recent closing. The date got pushed two weeks back, meaning I owed more money on my loan. The buyer was having problems with his financing, so I had written into the contract that if we didn't make the second closing date due to his fault that he had to reimburse my expenses for extending the date again. He agreed to the added clause. Sure enough, we had to postpone the closing again by a week. I owed additional interest on my loan for that period of time, which the buyer did return to me at closing. See about adding a similar clause to your contract.

Answer 3

Sure you can. They defaulted on the purchase. You will have to look for another buyer though. Only do it if you are sure this one is a goner.

Mortgage companies are folding mid-purchase, I am helping a friend with this same situation right now. (got her a better loan from my mortgage broker from heaven)

Answer 4

You really need to talk to a realestate lawyer because my state laws may be different than yours.