Expert: Dick Dennis - 8/27/2009

Question
I was buying short sale house in california.My agent completely misguided me.i was a first time home buyer and trying to get FHA loan.My agent told me i will be qualify for FHA loan up to$180,000
according to my income.finaly my offered approved one of shortsale home which was listed $160,000 after three month search. while we waiting for bank approvel letter my agent opened conditioned escrow and told me your FHA loan will approved guarantee and asked me to put $1000. deposit in escrow.when lenders sent my file to bank for approval bank did not approved my loan enough to buy that house.lenders told me i need to put 20% down.Because of my income.My agent knew my income from day first and agent promised me i get you a house on FHA loan.
now my escrow has been cancelled and my agent told me there is no cancellation fee i have to pay.but when i called Escrow company they going to charge me 30% fee of my deposit,because my agent did not cancel escrow on time.
I need help because my agent misguided me and not giving me right answer. tell me what can i do to get my full deposit back.Is there any legal action i can do against agent or broker.
Thanks,
Regards

Answer
Yes, Laz, you can take the agent and/or his boss, the manager of his office, to small claims court. I would go and talk to the manager of the agent's office and tell him/her you intend to take this matter to small claims court. Be sure to give them a letter of demand for your deposit. The small claims filing will require you to give them a demand first. That is the way it is done here in California. I can virtually guarantee you that you will get your money back before you go to court. Be sure to find out how the small claims court works by asking your local county clerk how it is done.

By the way, to get an FHA loan, you do need to put 3½ percent of the purchase price as down payment. Your agent should have known that and informed you. I do wish you well.

Dick Dennis
dixiedee13@aol.com