Lender states could not verify my employment on the day of closing. The seller is refusing to sign to release my earnest money.

I was pre-approved, found my home and on the day of closing the lender sent a denial letter, saying that she could not verify my employment and unable to verify income. I worked on contract as a home health aide, and when they call to verify, they told them, yes,I'm employed with the company I listed. The Lender started asking all types of other personal information about me, which lead to the person at the HR office, telling them my patient died, and they will send me on another contract, but i'm not working that very instant. My boss even had to speak to the lender and confirm that I was under contract with them. So I got the denial letter on the day of closing and now the seller is refusing to sign and release my earnest money. For reasons the bank listen, do they have a right to keep my EARNEST money?
(0) | asked by: Lisa Miller | share | 5 months ago | Report
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answer by Tom Allen    |   Visit My Website   |   Contact Me
Self-employed folks and contract workers have a very difficult time with this sort of thing. For it to happen on the day of closing is unheard of in my experience. If the lender had any doubts about your employment, they should not have scheduled a closing. I recommend you engage an attorney or, at the very least, escalate your complaint through the chain of command at the lender.
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answer by Ed McKeown    |   Visit My Website   |   Contact Me
I do not know Florida contracts although I do not know any that do not have mortgage contingencies. If you did not falsify anything and did not get approved due to job loss approaching the closing date you should get your earnest money deposit back for sure. Talk to the agent and their broker.
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answer by Elizabeth McBee    |   Visit My Website   |   Contact Me
If you look at the Florida Realtors/ Florida Bar AS IS contract - IF that is the one you used - Section 8 in Financing discloses what the BUYER's obligations are when obtaining financing. Additionally in Section 15 explains the Default and Dispute Resolution outlined for you as the buyer and for the sellers. Your best bet is to speak to a Real Estate Attorney to explain the contract in full and discuss how things came about. It always good to have a good agent on your side, who can explain every part of the contract to you during the purchasing process, so you are aware of everything you are responsible for.
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