Expert: Dick Dennis - 6/24/2006

Question
Dear Dennis,
I don't know much about law.  However, when I purchased the house, I sign with a contract that I don't have the right to ask the amount of deposit back later if I cancel the buying contract.  The builder has the right to make a decision.  This problem is not because of the builder, it is because of the lender.  Now they are trying to do an approval loan for me anyway.  On the other hand, I have talked to the sale representative, they said that I could not get the amount of 10,000 deposit back.  I really vague and don't know what to do?
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Followup To

Question -
I purchased the house in July 2005 and was done on April 2006.  The reason I could not get the house just because my loan could not approve on that time.  Then the loan officer from the lender told me to come to AZ, then she can closed my loan.  I came there and wait for a month, but she could not closed it for me.  Therefore, the company give my loan doc to another loan officer to take care.  Until right now my loan can not closed yet.  I waist time and money to come there with nothing.  Now I want to cancel buying house, because my loan supposed to be closed for almost two months ago with a lower interest rate.  Now interest is go up, and my earning money very slow down, therefore, I could not afford the monthly payment.  they told me that they won't return my deposit back, however my loan is not approved.  Is it right?  what can I do? Hopefully, I can get a good news from you.

Answer -
You write a letter (or have someone do it for you) and send it to the PERSON who took your deposit asking for the return of your deposit because they have not performed as required for the purchase of the property (as most all purchase agreements say). If you do not get an answer or they do not repay you, then you take the whole matter to small claims court if the deposit is less than $5,000 (or $7,500 in some states).

If you have had to pay other costs in the matter of buying the house, you may be able to hire an attorney as long as you have receipts of the additional costs.

Dick Dennis
www.oldproblemsolver.com  

Answer
They are taking advantage of you, Jessica! Every purchase is subject to the approval of the loan. Otherwise, you are supposed to get your deposit back. In what state do you live? In what state is the property located?

You may have to go to a REAL ESTATE attorney. Do not delay.

Dick Dennis
www.oldproblemsolver.com