Zillow Advice: Buying a Foreclosure - How do you get deposit money back when bank will not finance the house? http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ Zillow Advice | Zillow Real Estate I would suggest first rereading ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ <p>I would suggest first rereading your contracts for a finance contingency, then I would check&nbsp;the <a href="http://www.zillow.com/fha-loan/">FHA</a> paper work. Because FHA many times has repair/condition stipulations that state "if repairs are not made or home doesnt appraise for value" the <a href="http://www.zillow.com/mortgage/">loan</a> will not be issued and deposits to be returned. If after all of that has been done then get an attorney.<br/></p> Sun, 01 Nov 2009 12:40:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-11-01T12:40:00Z You need to understand your ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ You need to understand your state laws concerning escrow/good faith money. I don't know them all, but the several states I am familiar with are all very clear and as follows. It does not matter whether your contract states you are entitled to a return of the money. It cannot be returned unless all parties agree in writing. It must be held until then or disbursed as ordered by a court. In other words a broker holding it will violate state law if they return it without written approval or court order.<br/><br/>Personally I don't have an issue with this. I do have an issue with agents ignorant to this fact or knowingly letting their buyers enter into a contract absent of this clear understanding.<br/><br/>The law supercedes the contract and it is unfortunate agents don't tell their buyers and the contract fails to spell this out. If buyers knew, they would be reluctant to leave large deposits or buy at all. <br/><br/>It is a terrible and unethical practice by <a href="http://www.zillow.com/directory/real-estate-agents/">realtors</a> and yet another example how NAR fails to make an honest effort to benefit the public. Sun, 01 Nov 2009 12:19:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-11-01T12:19:00Z did you have a buyers agent? ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ did you have a buyers agent? or were you a customer?.. i would not let a buyer of mine sign a contract without it having a financing contingency.. in 20 years of selling <a href="http://www.zillow.com">real estate</a>, i don't think i have ever written a contract without that!! i sell a lot of bank owned properties and list a lot also, they all allow for the financing contingency, some however do not allow for the inspection contingency... Sat, 31 Oct 2009 17:34:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-10-31T17:34:00Z Many sales contracts do not ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ Many sales contracts do <u>not</u> have inspection or finance contingencies (particularly in <a href="http://www.zillow.com/homes/for_sale/fore_lt/">foreclosure</a> or short sale situations where the seller feels as if the reduced price should give them a confirmed sale one a contract is drafted) - which may mean you might not be entitled to having the funds back. <br/><br/>Definitely read your contract for contingencies and consequences, and seek the advice of a licensed&nbsp;attorney. Sat, 31 Oct 2009 16:58:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-10-31T16:58:00Z If seller refuses to give ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ If seller refuses to give back the deposit, then you need to get an atty involved.. however, IF the seller is <a href="http://www.zillow.com/mortgage-glossary/Fannie-Mae/">Fannie Mae</a> which is my understanding from your question, it is very unusual for Fannie Mae to refuse to give back a deposit under the circumstances you described.. Of course, it all depends on what your contract states... i would advise before anything else, have your agent forward the denial to the listing agent's Broker in Charge.. with a letter stating you are requesting the deposit to be returned .. good luck Sat, 31 Oct 2009 16:46:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-10-31T16:46:00Z Do you have an attorney involved ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ Do you have an attorney involved in this, lawinesap? &nbsp;This should be pretty straightforward... just do whatever the contract says you need to do. &nbsp;Usually that just means forwarding the credit denial letter. Wed, 28 Oct 2009 18:07:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-10-28T18:07:00Z It sounds like the listing ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ It sounds like the listing broker is playing games. What happens to your deposit is spelled out in most standard contracts. Mail both the listing broker and any supervising office broker a return receipt letter demanding the money with a set amount of time like 5 business days from the receipt of the letter. State that you intend to file a complaint with the local RE board and that you also intend to file a report of fraud with your local district attorney if your money is not returned. If you don't have a reply or a check within the 5 days after receipt as proven by the lovely post office tracking, hire an attorney and file the complaints as promised. Most smart brokers will send you your money before the complaint ever gets gets filed. Wed, 28 Oct 2009 18:04:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-10-28T18:04:00Z Have your lender issue an ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ Have your <a href="http://www.zillow.com/directory/lenders/">lender</a> issue an official credit denial statement and submit this to your realtor.&nbsp; The buyer's agent (your <a href="http://www.zillow.com/directory/real-estate-agents/">Realtor</a>) will work this out with&nbsp;the seller's agent.&nbsp; Provided that there's a financial contingency in your sales contract, then you are protected.<br/><br/>Feel free to call the listing agent's broker (owner)&nbsp;in case any further dispute is needed.&nbsp; Beyond that, you can contact the local <a href="http://www.zillow.com">real estate</a> board.&nbsp; Wed, 28 Oct 2009 17:41:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-10-28T17:41:00Z Your ability to get financing ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ Your ability to get financing is a CONTINGENCY of the contract.&nbsp; If your unable to get financing you are entitled to your deposit, no questions asked. Wed, 28 Oct 2009 17:35:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-10-28T17:35:00Z It all depends on what the ... http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ It all depends on what the contract says.&nbsp; You may need to contact an attorney. Wed, 28 Oct 2009 17:17:00 GMT http://www.zillow.com/advice-thread/How-do-you-get-deposit-money-back-when-bank-will-not-finance-the-house/292269/ 2009-10-28T17:17:00Z