You are here:

Buying or Selling a Home/Refund for Deposit on Manufactured Home

Advertisement

Expert: Jim Root - 2/16/2010


Question
Hello,

My husband and I have been trying to purchace a home.  We went to a well known company who sells manufactured homes.  We were using our land in the loan and the salesman told my mother in law that we wouldn't need anything down.  Well then he talked to me shortly after and told me to bring my checkbook.  When we got there the salesman told us that we were approved under the condition of a $4000.00 down payment, but he needed $1000.00 up front in order to get things going.  Well after my father in law politely talked to him in our presence, he suddenly changed it to $500.00.  We mailed him a cashier's check in the amount of $500.00 made out to the name of the company (because that's who we were told to make it payable to), and we referenced it as a down payment.  We were told that that would go towards the $4000.00 down payment and we would only have to bring $3500.00 to closing.  Some months have gone by and quite a bit has transpired.  Bottom line we have been being lied to about several things and have decided not to continue with this loan/company.  The only thing that we signed was a paper the first night acknowledging that we were there and saw the estimated amount of our monthly payments, a paper explaining the risks of formaldehyde, and an arbitration paper.  We do not recall signing anything saying that the down payment was non-refundable.  We were told by an individual that we are entitled to our $500.00 down payment, and that if we requested it within a 10 day period after we notified them that we did not want the home, the company had to return it to us.  They also told us that if they refused to return it then we could let them know that we would be contacting the Texas Department of Housing and Consumer Affairs.  Is this information correct and are we entitled to our $500.00 down payment?

Answer

Whether your legally entitled to your $500 "downpayment" or not depends on what your Purchase Agreement says about the matter--and laws on such matters differ in every state of the union.I suggest you write the Company a Letter ASAP stating that you do not want to proceed with the purchase and you wish a refund of the $500.

Describe the reasons for your disatisfaction with their handling of the trnsaction! Have an Attorney review the Letter and see if for a small fee he/she will put it on the Law Firm's Letterhead and sign it.

Last-but-not least, at the bottom of the letter's page, show a "Courtesy Copy" going to the Texas Department of Housing and Consumer Affairs.

If that doesn't get you your $500 back--take 'em to Small Clains Court.

GOOD LUCK!

--JIM  

Buying or Selling a Home

All Answers

Answers by Expert:

Ask Experts

Volunteer

Jim 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!

©2012 About.com, a part of The New York Times Company. All rights reserved.