I recently was buyng a condo but was denied by lender , Can I get my deposit back??????

Question

The selling agent told me and my agent because we removed all contingencies, we cannot get our deposit back, I dont think its fair because i was never approved. And finally the seller made me cancel because he didn't want to wait any longer. What can i do please help me!!!!

Oh and by the way this is here in California.

They told me to sign contingencies or they wouldnt let me continue. But another thing is that A week ago they told me to cancel escrow because it looks like they have a cash offer. So i told them i'll sign the cancellation if they negotiate my deposit, they said ok but now i got a feeling there going to give me back a little. Plus there escrow is trying to charge all these fees out from my deposit.

Answer 1

If the sales contract you signed had no contigincencies, that means you had to close or forfeit the deposit plain and simple. It basically was written up as a cash deal.

I have no idea why your agent would have you write up or sign a contract without a "Financing Contigency" if you were indeed obtaining financing.

Now you did mention "your agent said you REMOVED all the contigincencies" Did you REMOVE ALL your Contigencies after the initial contract was signed? and if so why?

If you did remove these contigencies that's why your deposit is NOT refundable.

It seems to me there might be a little more to this story. My best guess is you signed an initial sales contract with the normal financing contigencies, you then missed the initial closing date because there was a delay or a problem with your Financing, the Seller agreed to a closing date extension only if ALL CONTIGENCIES were waived on the sales contract, and you agreed it.

I'm NOT an attorney and the above statements are just my opinion, but you might want to speak with an attorney regarding this matter.

hope this helps, SELL2K

Answer 2

I dont understand why you would remove the mortage contingency. Espeically if you were borderline with credit or income. Very few sellers ever have a problem putting that in the contract.

You need to just keep looking around.. and fast. Tell the sellers the situation and ask them if you can have another month or so to find someone to finance. A nice person might say yes. Someone out there will probably approve you also.

Otherwise you have no legal recourse to get the deposit back. Outside of begging for it back.

Answer 3

call your agents manager
you never should have been put in a firm condition if your finances were not in order
if you do not get an answer there, go to the board..
you never should have been put in a firm position if your finances were not in order..
this is a breach........
p.s. if your lender has "refused funds" for whatever reason..you can not be put into a firm condition this is a "breach".......
california real estate law
article 3 section 10176 section (K)
(k) Failing to disburse funds in accordance with a commitment to make a mortgage loan that is accepted by the applicant when the real estate broker represents to the applicant that the broker is either of the following:
(1) The lender.
(2) Authorized to issue the commitment on behalf of the lender or lenders in the mortgage loan transaction.
(l) Intentionally delaying the closing of a mortgage loan for the sole purpose of increasing interest, costs, fees, or charges payable by the

pick up the phone and report..you will get your money back..
they are trying to cover the mistake....and making a bigger one.

Answer 4

You're supposed to get pre-approved for the purchase before you make the offer, and have an actual approval before you sign contingencies. When you sign contingencies you're saying that you will diffently close the escrow within a certain amount of time. I don't think there is any way to get your deposit back. The best thing to do is try to tell the owner that you want another chance and work with someone that can actually get the loan done for you. good luck

Answer 5

Why in the world would you remove the contingencies from your offer?? Something funny is going on here. Either you're dealing with an unethical agent or there's something that you're not telling us!

If you did in fact remove all contingencies from your offer and then could not secure financing, then yes, you forfeit your earnest money deposit. You should NEVER allow yourself to be bullied into dropping the normal contingency clauses such as financing, inspection, etc.

Answer 6

There is a very important detail you left out: What reasons did the lender give for denying you the loan?

If all of the conditions were cleared on the loan, I have never seen a loan that was denied with ALL conditions cleared....that means an approval. What changed? Details are important here.

That is the only way someone can advise you if you can get your deposit back.

Feel free to e-mail me.

Answer 7

What type of financing were you trying to get? If it was FHA or VA, you should have a better chance of getting your money back.

Otherwise, unless you had a financing contingency still in place, you might be out of luck.

I'd try to consult a real estate attorney, at least depending on how much you stand to lose and how much it might cost in attorney fees.

Answer 8

I have to agree with Amir.....Once you waive the contingencies not much you can do..I would talk to the owner and wee if you can get approved by another lender..Sorry

Answer 9

If you signed a contract stating that if you don't live up to your side of the bargin. They can keep it. Key word "signed contract" If not, you are more than able to get it back.

Answer 10

youll know better next time....no dep. til youve been pre-approved.......