Expert: Lori Frankfort - 7/30/2008

Question
Back in May, my soon to be wife and i found a place to start our life together.  We couldn't come up with a 5% down so our real estate agent suggested to Go with an FHA loan where we would only need 3%.  So we started the paperworks made an offer.  We qualified for the FHA loan. We knew that the building was not FHA approved and sellers knew that we were going with FHA.  I also put down $5k down.  The first bank declined it because HOA was not established for one year.  Then we went to IndyMac and as you know they went under on giving new loans.  Third was Stern Lending and they said the same this as Wells Fargo, HOA has not been established for one year.  We spoke with the sellers and they said they would come with 15% and i needed to come with 5%.  Now from the start i couldn't come up with the extra money so we decided that this isn't working out and we would like our money back but the seller does not want to give it back.  We also have sent money to escrow but they are waiting for a joint agreement between us the the buyer.  Where do i need to look on the contract to see how we could get our money back or at least get the money sent to escrow back. Its about 3 month now and i need the money so i could use it for the wedding.  My agent is currently sending a letter to the sellers agent because they will not return our calls.

Thank you for you help,

Avo B.

Answer
The real question is whether or not you had a loan contingency, and whether or not you REMOVED that contingency through your agent.  You need to ask him/her about that.  If you have NOT removed it, you are due back your money.  If you did remove it, you are out of luck.

Best,
Lori