Loan fell through after two separate pre approvals

[Matthew Miller]

So I had a house under contract. Nice two family as a house hack. After two separate pre approvals from two different lenders. House was under contract. I paid for FHA appraisal and an inspection and gave my deposit. Almost a month going through the FHA 203k process the lender notifies me that he cant get me a loan due to issues with the foreclosure in my past which he knew about from the beginning. Now seller says they are keeping my deposit. House is back on the market. Can they do that?

[Upen Patel]

@Matthew Miller The answer is not straightforward. It depends on the contingencies in your contract and if the FHA Amendatory Clause form was executed or not. If the contract had financing contingency then you should have a way out, as long as you invoked it within the time line OR the realtor extended the timeline.

What does your realtor have to say? This is their job.