Posted by River City on May 28, 2004 at 07:30:38:
The mortgage company should send you an adverse action notice that indicates your loan is being denied due to the property not meeting requirements. Since you have the financing contingency in the contract, once you have the adverse action notice in your hands, you should be able to get your earnest money back. I would suggest you call the loan processor and ask her when the adverse action notice will be ready. If you are dealing with a realtor, the processor can fax the notice to the realtor, or, if the capability is there, the notice can be emailed to the realtor.
Earnest Money Help - Posted by aaron
Posted by aaron on May 28, 2004 at 07:12:34:
Here’s the issue. We got a contract on a house on the MLS. We specified that we would be using traditional financing. The house was in need of some rehab. We put down $500 earnest money. During the process, our lender was a bit slow in making it all happen. So we ran up to the wire with the contract experiation. The gal I’ve been working with at the lender was confident that we could still make a close…while my RE agent was skeptical. The appraiser finaly got to the property and said that he would not sign off on it because it didn’t meet guidelines because of it’s condition. He wouldn’t sign off without a foundation inspection (it was a wood foundation that was “crumbling”.)
My question is this. What happens with the earnest money. According to our lender, we are out the appraisal irregardless of if the loan goes through (I understand that). But they said that ANYONE will have a rough or impossible time getting conventional financing on this property. We had a financing contingency in our agreement. Can we get our earnest money back?