Was going to buy a home and put down $500.00 towards the home (ernest money). My financing didn't go through and now the owner of the home is not giving my deposit back...The contract stated that, the money will be refunded if their are financial stipulations and if the loan doesn't go through...
In my case, that's what happened...Now I will more than likely take her to court...Here's my question :
What is the penalty, if a judge orders you to pay $500 back to a person in small claims court by a certain date, and you don't pay it? Thanks for your help!!!
2007-11-30 09:03:08 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It can be submitted to a collections agency.
Small claims does not issue contempt charges like regular court does.
2007-11-30 10:08:23 · answer #1 · answered by Landlord 7 · 3⤊ 0⤋
The small claims judge isn't going to issue any order of that sort. You are suing for a specified amount of money. The judge will either rule that you are due the money, or not due the money. If the ruling is in your favor, then you need to take further actions to collect with your judgment.
And the next time you decide to purchase without professional representation, put the downpayment in an ESCROW account, such as title firms have available. Then you won't have this issue again.
2007-11-30 17:08:43 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
If this was through a realtor, talk to the listing agent.
Send a certifed letter to her, real simple. I gave you X on date Y. I was not approved for financing. As per the contract since I was not approved for a loan, my ernest money should be returned. Please send a paymen to.
If you did not have a written contract, and the person thinks for some reason you are not due the funds, then it might be a lost cause.
When I was selling a house I would not take ernest money from anyone who was not prequalifed.
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2007-11-30 17:21:17 · answer #3 · answered by Gatsby216 7 · 0⤊ 0⤋
Your funds should be in an escrow account in which case escrow or the real estate company should give them back.
If this was a private transaction, and no escrow or agent was used, I would file a lien as soon as possible...before they sell the house...just as a back up.
I dont have an answer on the penalty part...just want to be sure you know other options.
Good luck
2007-11-30 17:11:10 · answer #4 · answered by queenvwr 2 · 0⤊ 0⤋
Small claims court doesn't necessarily have a lot of power. But if you have a judgment in your favor you could have a lien placed on the property. Basicially, the lien would have to be paid off before the property could be sold. Unfortunately, it could take years for that to happen.
2007-11-30 17:10:08 · answer #5 · answered by Angie 6 · 0⤊ 0⤋