AboutJim Root Expertise How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!
Experience Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!
Organizations Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).
Publications Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.
Education/Credentials Associate Degree in Real Estate Studies plus:
Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years.
Bachelors Degree in Mass Communications,
Masters Degree in Education/Teaching
Awards and Honors Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.
Past/Present Clients No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!
Question I live in the state of PA. We were looking at a house and put a bid in around Oct/Sept 07. We put a deposit of 500 dollars down and were approved for a FHA loan. We come to find out that the owner didn't own the house for the 91 days required and got denied the FHA loan. The sellers agent (who was the daughter of the sellers) told my agent to get me to try a few more place for a conventional loan. I did and kept getting denied until I called the final place the sellers agent told me to. I got approved but at an extremely high interest rate which made the payment higher than what I could afford. The sellers agent said I lost the deposit and so did mine.
Is that correct? Should I have to go through the whole phone book until I get approved? I don't know I feel a little taken advantage of. Any advice I would appreciate.
Answer MICHELL--
Without knowing the specific wording of the Purchase & Sale Agreement(a legal & binding Contract) signed by you & the Seller, especially as it relates to the Earnest Money Deposit--sometimes called "Good Faith Money"-- AND/OR any contingencies in that Contract relating to your approval or denial of financing, it's impossible to give you a precise answer!
Generally speaking,Good Faith Money is refundable--and refunded--if the Buyer is unable to obtain "suitable" financing. These Contracts CAN be worded, however, to preclude refund of the Earnest Money Deposit if the sale fails to close for ANY reason.A "Buyer's Agent" usually ensures that the wording of the Contract serves the Buyer's--not the Sellers--"Best Interests!" Your situation, however, MAY be further complicated by the fact that you WERE approved, then denied, then WENT LOOKING ELSEWHERE for financing!If you'd requested a refund of your $500 Deposit upon being advised by your Lender that your originally-approved FHA loan was denied, you MIGHT have gotten your money back then. You're further attempt to get financing MAY somehow be detrimental to your efforts for refund now! The fate of your $500 Deposit may now rest in the wording of your Contract with the Seller!
YOU NEED A LEGAL OPINION & ADVICE BASED UPON A REVIEW OF YOUR CONTRACT BY A QUALIFIED PROFESSIONAL WORKING IN YOUR REAL ESTATE MARKET AREA! This means "You need to run this by an Attorney!"
As both the Seller's Agent & yours seem to think that you have lost your Deposit, I suggest you make an immediate appointment with YOUR Agent's BROKER and suggest that HE/SHE work with the Selling Broker to get you your $500 back! Submit a written request for refund of your Deposit! See what response you get from the two Brokers involved! It is they who have control of the Deposit that should be held in a Trust Account until either used at closing, refunded to the Buyer or forfeited to the Seller!
Your AGENT and the Seller's Agent MAY or MAY NOT be correct in their interpretation of the "Deposit Clause" and/or the "Financing Contingency" of your Contract. See how the Broker reads it and proceed from there! Request a written response from the Broker ASAP.
Should the Broker(s) fail to respond to you in a few days, OR deny your written request for refund of the Deposit, you should get an Attorney involved.The cost of a Lawyer may not be offset by the $500 you MIGHT get back with his/her help! But if you contact the local Chapter of your State's Bar Association, they may connect you with a Lawyer who does "Pro Bono" (Free) work for those needing it!
The BOTTOM LINE is that this is a "Contractual Matter" and could be resolved by the two Real Estate Brokers who are responsible for putting the Contract between you and the Seller together. If they cannot/will not return your $500 to you, it will need to be either negotiated by a State-licensed Attorney OR adjudicated by a Court of Law!(Maybe the SMALL CLAIMS COURT?)
GET A LAWYER TO GIVE YOU HIS/HER LEGAL OPINION & ADVICE ASAP IF NEEDED AFTER FORMALLY REQUESTING A REFUND FROM THE BROKER!
Sorry I can't give you any more than very "Generic" answers to your questions. As I'm not an Attorney (or a Realtor) in your State, to be "Specific" would be "practicing (real estate) law without a license! So I cannot give you legal opinions or advice on matters involving the law. My response to you is strictly informational & educational, in an attempt to help get you started down the right road to solving your problem! Good Luck, Michell!
