EMD and a Lender who failed to fund

[David Roe]

Question. Are lenders responsible at all with EMD of an investor who received approval of funds, the deal was approved, closing was scheduled and the lender failed to fund by the closing date. Now the seller backed out along with keeping the EMD. Is there any recourse on the lender?

[Matthew Crivelli]

You would have to talk to a local attorney about the specifics of what happened. In SOME cases a lender could be held responsible for damages but trust me, lenders usually have most bases covered.