no good lenders
what do you do when a lender walks you through a whole deal step by step and at the end doesn’t follow through at closing…and you lose your earnest money that you so faithfully put up?
do you give up on lenders??
do you give up on rei???
who do you trust??
rheebaby
Hi Rheebaby,
If there’s absolutely no recourse to get your earnest money back, and even if you do get it back, you look very hard at what went wrong, figure out how not to let it happen on the next deal, and then proceed to the next deal. It’s called the price of educating yourself in this great field of real estate.
You learn to trust yourself and usually no one else unless you have established a solid relationship. Because you do need others in this business . . . just make sure you put them through whatever tests you need to in order to allow them onto your team.
But definitely, under no circumstances, give up on real estate investing. 8)
Good luck!
Cate
Yes, rheebabe, trust is a rare commodity these days. Sorry to hear the deal went south. I’m sure you’ve done this, but double check your sales contract to see if there is a “financing contingency.” If there is, have the lender get their denial letter to you and forward a copy along with a “mutual release” to the listing agent.
Hey, remember this site gives 100’s of ways to acquire real estate without mortgaging the property. It only closes a few doors. The financing of investment property is one of the biggest challenges. One of my favorite sayings in real estate finance is “don’t try to fit the round peg in the square hole.” Quite often, it’s the wrong loan for the right deal. Inexperienced loan officers tend to take a cookie cutter approach to financing for investment. Don’t give up on the financing, you must master it. Give up on the Lender and find one who’s better equiped. Finding a quality lender is more difficult than finding a great piece of property.
The only “trust” in real estate is revocable. Sorry, a little bad investor humor.
-H
what do you do when a lender walks you through a whole deal step by step and at the end doesn't follow through at closing......and you lose your earnest money that you so faithfully put up?
What did the lender do…or not do as it would appear. ???
i’m still looking for a hml a this time…really my hml just gave me his word and said he would send me a proof of funds letter…so i trusted him…being that he is such a respected investor and mentor…at this point it looks like i might lose my earnest money…which is bad but i think my dreams are hurt more…6yrs is a long time to take your first step…and when things like this happen…you tend to take it very hard
rheebaby
write a better sales contract that will allow you to get your earnest money back if you can not obtain financing.
Rheebaby,
As Housebroken suggested, check your Purchase & Sale Agreement to see if it has the financing contingency in place. Let us know what it says as that may cover you to get your earnest money back.
If there was negligence on your lender’s part, you may also be able to recover from them as well. If they’re licensed, as in WA, that will give you additional leverage in getting them to make it right, i.e., paying you back your earnest money.
Cate
If the lender couldn’t get you approved for the loan then in Most states you would be entitled to your earnest money being refunded back to you… I would call the Lender and or find out who the companies leader is and speak with him. If that still doesn’t work then I would call your local TV News Channel they all usually have a Consumer Advocate groups who love to go knock on doors and ask people why they took advantage of you like that.
Just my two cents…