Can my realtor or the title comp. give me my money back?

Question

My realtor/broker said I qualified for a $128,000 loan.They ask me to pay $1000 for the title comp to start clearing the property. The Title comp (Stewart Title) has already cashed the check. Now my realtor said they are waiting on the bank for the final response. The bank already said my income did not match what my realtor had said, so he made some changes. If the bank denies my loan, will I be able to get my money back. I know the appraisal will be lost...Please help.

Answer 1

you got scammed, good luck!!!!

Answer 2

In the future ... make sure that you ask questions; and do not
sign anything .... or give up ANY money until you totally understand what is going on.

I am assuming that you made an offer on a specific house.

Did you sign a Purchase Agreement??? Was your offer
accepted???

The Buyer DOES NOT pay for the Title Company to "Clear
the Title" up front. (At least not in my State) ... So, I am wondering if the $1000 was for the Earnest Money Deposit;
or in some States it is called the Escrow Deposit.

If your $1000 was for a Deposit .... and you did not qualify
for a Mortgage (You should have a denial letter from your
Mortgage Company) Then you are entitled to your money
back. (Most Purchase Agreements stipulate this!)

I am also confused as to why your Realtor qualified you for
a loan. Were you not (also) working with a Mortgage Agent or a Loan Officer??? A Realtor can pre-qualify you. But
usually you need a Pre-Approval letter from a Mortgage Company or Bank to submit an Offer to Purchase.

A reputable Mortgage Company or Bank is required to give
you a WRITTEN GOOD FAITH ESTIMATE. This document
will itemize (in writing) what your closing fees and expenses
are. Usually the only Buyer fees that are paid up front are
The appraisal; the Deposit; and (maybe) the fee for the credit
report.

Any fees for Title Insurance or a Title Search are usually
part of your closing fees ..... And are paid at closing.

Make sure that you are dealing with Realtors, Bankers, and
Title Companies ... that are reputable. Get referrals from
trusted Family or Friends.

I sincerely wish you ALL the Best!

Answer 3

Before you go to look for a house you need to have the bank approve you for buying a home and specify an amount they will lend you. Realtors know this, and in fact they normally don't even show people homes unless they are pre-qualified. Realtors are members of an organization and that organization has an attorney. So first ask your realtor what they plan to do now.....(don't give them a response, just ask them questions), and if they don't make good, then take that information to your own real estate attorney.

Answer 4

Are you sure the $1000 was for title insurance and not for the escrow deposit? If it is for title insurance then you won't get your money back but in my state the buyer doesn't pay for title insurance until closing. Also, mortgage companies, title companies etc... do not go by a Realtors word on income. It is on the info provided by the buyer. I think you may be confused. In my state a contract is always contingent on the buyer getting financing. If it turns out you can not get financing then you should get your escrow deposit back.

Answer 5

Hello I'm a broker in NM and the way we do it here is purchasing your house and the offer are all contingent upon your financing. If your loan does not go through it is up for both the listing agent and selling agent to determine how the ernest money will be distributed. Depends on how your agent wrote the offer. sorry

Answer 6

Title insurance is title insurance.

If you paid 1,000 dollars to a title company for title... they give you title insurance. It sounds very high for that size of loan.

I need to know who you paid. Did you pay the lender and his say its going for title insurance? And they just cashed the money? Or did you give it to the title company? As lenders we check title all the time, we only pay when we actually get the insurance. Meaning if we dont get it, we dont pay.

Depending on the Insurance company (title company) they might just try and keep your money. If thats how they operate you cant do much about it. Normally if the lender orders title is a 200 dollar fee if they cancel. None of the title companies have ever charged me that fee. One company tried once and I said fine I will pay it but we will never do business again.

They get paid if I get paid. Ive never paid for title that didnt close. Your 1000 dollars is paying for something that is only insured if you get the loan. Title searches dont cost 1000 dollars. The alta policy might. If you didnt get the property, you never needed the insurance. Stewart title has nothing to do with this, its the independant agent. usually.

Get your money back. If you gave it to the title company. They will be regulated by the dept of insurance in the state you are in. They will give it back to you. If you gave it to the lender for that purpose. It depends on your state where that money can go. But I guarantee it didnt go to search the title.

What you paid for was an abstract. At most 25 bucks (something ive never paid for). Get your money back.

You cant pay for insurance on a car your dont have, the same with title insurance. You cant pay for insurance on a home you dont own.

Here is what you do... *PRINT THIS* *TAKE TO TITLE COMPANY* say where is my check?

Answer 7

I'll try to explain why you need to seek legal advice.
Stuart Title ( a good reputable company) is acting under advice from someone, I think you said the agent, so you need to seek answers as to why the agent made you spend money as to your ability to; one, recover your investment or two, apply the investment used towards the cost of acquisition. If on the other hand the bank comes back and says you can do what you are attempting to do everything will depend on what the accepted offer to purchase says. If you don't have an accepted offer to purchase your legal counsel will have a ball.

Answer 8

Always depends on what was in writing in the contract you signed . . .
You read it of course , what does it say ?
Did it say everything was contingent on securing the loan ?
That it was refundable if not secured ?

Life and law rotates around what is in writing and
You did NOT post your contract for us to review .

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