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Rainmaker
1,648,683
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Talk to your broker and your title attorney. Each state has different contracts and this is a contract specific question. It is really important that you present it correctly to the seller/listing agent to get your buyer's money back. Be very careful what you say. Get your broker's help and advise from your title attorney. Don't go it alone. 

Sep 18, 2015 10:24 PM
Rainmaker
3,241,496
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Lise Howe has the right approach although I can't tag her for some reason.

Sep 19, 2015 06:20 AM
Rainmaker
1,366,927
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jacqueline Adj-Omania Assuming this means terminating the contract, check out the financing paragraph in the contract. In my State financing is a contingency to the contract. If the buyer fails to get financing, the EMD will be returned with no penalty. We also have a Release Form which the seller and buyer is required to sign to release the funds. Texas may have a similar procedure.

Sep 18, 2015 11:38 PM
Rainmaker
2,232,241
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Jacqueline. Hopefully the purchase agreement set out what will happen if financing falls through and that the selling agent has made sure that the deposit is protected.

Make it a great weekend!

Sep 18, 2015 06:19 PM
Ambassador
2,849,870
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

you'll need a denial letter and the EM depends on the terms of the contract was inside or out the contingency period for financing? But totally controlled by what the contract says.

Sep 18, 2015 04:37 PM
Rainer
432,686
Sara Wagner
Woodland Management Service - Adams, WI
The Forestland Experts!

Talk to your broker about local policies and laws.

Feb 15, 2019 12:13 AM
Ambassador
4,056,577
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I would be seeking other financing right away, but as to the rights of your client, it all depends on what your contract says.

Aug 26, 2018 10:15 PM
Ambassador
907,094
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

I agree with all comments thus far. As always, check with your Broker for their policy on handling these types of matters. 

Sep 20, 2015 12:46 AM
Ambassador
1,491,265
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

A letter from the lender and yes here one gets the earnest funds back. It may take a while and gnashing of teeth but it all works out.  Talk with your QB.

Sep 18, 2015 11:34 PM
Rainmaker
1,477,956
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

If you still have a loan contingency( and appraisal one), why would B. loose the EMD? Or you can try with a different lender if the seller agrees for the extension and you believe that a new lender will pull it through. ( Hard to speculate, since you did not mention a reason of a loan denial).

 

Sep 18, 2015 03:42 PM
Rainer
144,903
Andrzej Niemyjski
Realty One Group - Sun City West, AZ

In most of the contracts the contract is contigent on buyer obtaining financing and they will get their earnest deposit back if they done everything possible to qualify for a loan but did not get it.

Sep 18, 2015 12:56 PM
Rainmaker
984,759
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Show a letter from lender and have all parties to sign as a cancellation of contract. It really depends on the seller. If they have a back up offer they are happy to release you.

This is very common TFT......

Sep 18, 2015 11:49 AM