Buyer Recourse for Ernest Money
Hey BP!
My very first post here! Anyways, here goes. I think I already know the answer, but figured I'd double check anyways.
My question is with regards to how Ernest Money is to be handled in a specific situation: An offer was made in Dallas, TX, and the deal was put under contract with a 14 day contingency for securing financing. However, it turns out the mortgage person was not the greatest, said all was OK...until AFTER the 14 day period (it was really the friday before a monday close, but who's counting). Long story short, the contract was extended once to try to make it work, but the mortgage company was still unable to fund.
Under these circumstances, the buyer, would lose their earnest money. However, in this case, the seller somehow found another buyer ...and rather then extend the contract, opted to switch to this new buyer (& understandably so).
In the above scenario, does the buyer have any recourse to recover the Ernest money? Whether from the mortgage company or from the seller?
Thanks!
Most Popular Reply
The short answer with a TREC contract is no as the buyer failed meet the deadline to obtain financing and the deadline to close
Did the seller send over a Notice of Termination and a request for the EM?