Will i lose my earnest money

Question

I live in California, and I am currently experiencing that is freaking me out. My lender is being very slow with the appraisal. I believe they have not even ordered it because I have not been charged yet. I am out of the contingency period and dropped all contingency other than appraisal. The seller is now unhappy and is threatening to cancel escrow and/or suing me for the earnest money.

Can they actually do that? How do I go about doing this? Any advice would be greatly appreciated.

Wayne Brooks · Answer

We don’t know exactly what your contract says. If your appraisal contingency is still valid, you’re okay with your EM. However, the seller may to the right to cancel, returning your EM. Many sellers/buyers huff and puff BS.....your contract language is all that matters.

Theresa Harris · Answer

Your lender needs to get on the ball and do the appraisal.  As Fred suggested, call the bank and tell them the deadline for financing is XXX and the seller is getting mad that it hasn't been done.  You might want to talk to another lender and explain the situation.  The new lender might jump at the chance to get another client.

Jay Hinrichs · Answer

attornies do not handle real estate closings in California Title and Escrow companies do..  its not like East coast attorney closing states. Just fyi.

if you still have your finance contingency you can back out and get your money back if the lender denys you.. if you run out of time you could lose it.

you should be talking to your real estate agent about this.. that is the one who will help U

Frank Wong · Answer

Hi James,

If you still have your loan contingency you should still be fine.  In CA if you used a CAR contract.  There is a section in the contract that says NOTICE TO BUYER/SELLER PERFORM (NBP, NSP).  The seller has to give you 48hrs written notice before they can cancel the contract.  You can also ask for a loan extension which you should do.  If the seller does not grant you the extension.  Then you can cancel the deal citing non-loan approval and ask for your deposit back.  Talk to your realtor about this and go over all your options. Honestly, your agent should know this and I 2nd that of Jay.  This is agent matter.  Funny people always talking about suing people. That's so dumb. If your deposit is $15k you going to spend $15k in fees to get it?  Lol

Luka Milicevic · Answer

No idea on the exact details. In my personal experience it is VERY hard for a seller to get the earnest money deposit. I have never seen it happen, even in some cases where I thought they should have received it. That's just my personal experience.

Fred Shatzoff · Answer

@James Smith  How long ago did you apply with your lender?  Call them today and explain situation and find out what is going?  Do you have an Attorney handling this for you if so contact them today?  Good luck.

Will i lose my earnest money

Most Popular Reply