refund of Earnest Deposit Money

refund of Earnest Deposit Money

Member since 2020 · 14 posts · 2 votes

I have a contract with a builder to a home. It has Lender A in the contract but things did not work out well with him

and I had approached another lender, who I was workning with, but my Loan got denied with Lender B.

I approached the builder sales person to refund my money as the contract says if Loan is denied that the buyer will get money back.

But the sales person says since its not the Lender A with whom the Loan is not denied they will not refund my money. This is in state of Georiga

any advise. Here is the contract wordings 



In the event that Purchaser is unable to obtain a loan or commitment for a loan from the Mortgage Lender within thirty
(30) days of the date of this Agreement and such failure is the result of a denial of the loan application by the Mortgage Lender or the failure
of the Mortgage Lender to complete the timely processing of the loan application, Seller shall have the option at any time thereafter to declare
this Agreement null and void upon written notice to Purchaser, and all earnest money paid hereunder shall be refunded to Purchaser. In the
event that Purchaser is unable to obtain a loan or commitment for a loan from the Mortgage Lender within thirty (30) days of the date of this
Agreement for any other reason, Seller shall have the option at any time thereafter to declare this Agreement null and void upon written notice
to Purchaser and Seller shall retain all earnest mone

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  • Rental Property Investor · Fargo, ND · Member since 2017 · 129 posts · 107 votes
    3y

    You will need to provide a letter from Lender A saying that they are unable to finance the purchase. 

  • Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    3y

    This is why attorney's get paid...to 'fret' over things like the lender vs. a lender. The builder certainly has a strong case to say that their contract acceptance was at least in part based upon you using a lender they accepted and was referenced in the PA. That lender was thereafter the lender in the clause you reference. So if you have any time left of the 30 days you should reach out to lender A and see if they can get you approved/denied ASAP. 

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Joe Dupa

    You said it didn’t work out with lender A. What does that mean?

    Based on what you provided (not an attorney), it looks like the builder has a strong case. It’s not that you cannot use another lender but you can only cancel if lender noted in the agreement denies you.

    Hopefully you can get this resolved.

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