I ratified a contract and am unable to get financing. Do I have to release the earnest money to the sellers?

The sellers agreed to release me from the contract but have threatened to sue me for the earnest money.
(0) | asked by: Monica Crawford | share | 2 weeks ago | Report
2500 characters left
Answer Tips: Share your knowledge. Be on-topic . Refrain from self-promotion.
* Refer to our community guidelines.

Answers

Viewing Answers 1 - 5 of 5
answer by Jerry Pascale    |   Contact Me
If the contract you executed provides for a financing contingency clause then the EMD should be returned to you. If, however, the contract ready non refundable under any circumstances, then you have a conflict in the contract and it should be resolved legally
0
0
Answer Helpful?
5 days ago  |   Report   |   share
answer by Craig Lusby    |   Visit My Website   |   Contact Me
The Depends: on the Language in the Contract that governs this issue, and whether or nor you have defaulted. One of the Buyer's responsibilities is to make a good Faith effort in Promptly applying for a mortgage and cooperating with the Underwriting process. More information would be needed to answer properly; it's not a simple issue.
0
0
Answer Helpful?
6 days ago  |   Report   |   share
answer by Glory Bee Costa    |   Contact Me
Normally NO, you would not need to release your deposit to the Seller if you have a financing contingency and it hasn't expired yet. Check with your agent,.
0
0
Answer Helpful?
2 weeks ago  |   Report   |   share
answer by Darin Rich    |   Visit My Website   |   Contact Me
Hi Monica, I would refer you back to the agent that represented you in the sale to make sure you are properly advised. The short answer would be NO, you wouldn't need to release your deposit to the Seller if you have a financing contingency and it hasn't expired yet. You would have to send the Seller written notification and include the declination letter from your lender. You really shouldn't have an issue if you haven't defaulted but again, it's best to seek advise from your agent. Best of luck!
0
0
Answer Helpful?
2 weeks ago  |   Report   |   share
Jim Coulter
answer by Jim   
The answer is in your contract of sale contract. Take a look. More than likely the answer is yes...if you can prove that you can't get financing then you can void the contract
0
0
Answer Helpful?
2 weeks ago  |   Report   |   share
Please read Homes.com's Questions & Answers Community Guidelines.