Wholesaler stopped communicating with earnest money deposit

[Lee Lockhart]

Hi Biggerpockets, “What remedies to expect/use on wholesalers that keep the ‘good faith escrow’ and don’t return it?” “What are some of the punishments dealt to the wholesaler  e.g. were they imprisoned or fined, forced to pay all plaintiff attorney’s costs, enjoined/lost ability to enter into mortgages, sell real estate, or dealing in finance deals?” We have a signed contract that the wholesaler don't want to move forward with because he discovered he can't double close and have to pay closing costs on two transactions, which eats into his profit. He has stopped contact. Thanks for your answers. Lee

[Kyle J.]

@Lee Lockhart  It sounds like you paid this an earnest money deposit directly to the wholesaler.  If so, unfortunately you're probably not going to see that money again.  

In the future, don't ever pay money directly to a wholesaler (or an actual seller for that matter).  It should be held in an escrow account.  

Hopefully you're not out too much money.

One idea to help salvage the deal, if it's just the wholesaler that has ghosted you, perhaps you could try going direct to the seller and see if he/she is still interested in selling to you directly?   After all, you two are the true principal parties in the deal.  The wholesaler was just the middleman.  Maybe the seller still wants to sell but is also wondering what happened to the wholesaler.  Might be worth a shot.

Good luck.