hey guys,
thanks in advance. not long ago i was denied a mortgage loan because the bank said the land wasn’t worth the asking amount. i signed the form for the earnest money to be returned to me. But the seller signed for the money to go to him. what is the best way to solve this situation?
rashidi
The contract should state that either the earnest money goes to buyer or the seller.
What other form are you speaking of?
Unless you had a financing contingency in your contract, the earnest money should probably go to the seller. Without actually seeing your contract, we can only guess.
What does the broker for the agent holding the earnest money say?
rashidi,
If the seller is in the right then it is probably due to no mention of a ‘subject to 3rd party financing’ clause where is you are unable to qualify for a loan for a specified amount and rate that you can back out and get your earnest money back. otherwise you frofeit that money. A decent if not good realtor should have included that in the contract if they knew you were going to try and get 3rd party financing.