Expert: Charles W. Field - 12/8/2005

Question
Mr. Field,
I recently accepted a contract from a buyer for the sale of my home.  The contract acceptance became a dual agency situation.  The contract was signed on the 12th of September, with a closing date of Oct. 12th.  I had some reservations about the buyer's ability to get the loan amount approved as she was trying to borrower 10K above the asking price.  I repeatedly asked my agent and the broker to make sure she was a qualified buyer, because I was going to have to leave before the closing for the closing of my new residence.  Since I had been assured by my agent, and the buyer's agent that she was a qualified buyer, I went ahead and borrowed the money to close on my new home from my IRA.  Based on the contract I would have the money to replace it in 2 weeks from the date I borrowed it, and was not in any danger of penalty.  I made this decision based on the assurance from the buyer's agent indicating that her buyer made 85K per year, and had a pre-approval letter from the lender, and that she had spoken with the lender and she knew the woman was qualified for the loan.
I went ahead with my move still with some reservations about the buyer, and now am having a few concerns about her agent as well.  
The night before my home was to go to closing I was called by my agent informing me that the buyer had used a EIN trying to pass it off as a ss#, and the loan would not be funded.  It took the broker(lender) 4 weeks to discover this?  
The buyer refuses to release the earnest money to me, and her broker calls the agents I have now listed my home with to inform them they cannot sell the property, because her buyer still has it under contract until I release her earnest money.  I sent a certified letter to the buyer two weeks after learning of the fraud ending the contract based on it not going to settlement.  I feel I am being harrassed by the buyer's agent, especially when she knows her client committed a crime by giving false info on a loan application.  This took place in Maryland(property is located there).  Lender is in Virginia, and the buyer and brokerage is in Maryland.  I have tried to get her prosecuted for this by giving the info to FBI Fraud division, and reporting her to the fraud division of the Howard county police dept.  I have the loan denial paper stating that she gave false info. which is why the loan was not approved.  Her actions have turned my financial situation into a nightmare, it seems that she is going on with her life, and the broker is being an advocate for her only - and trying to strong arm me into releasing her earnest money.  What can I do?  I not only have two mortgages now, but my debt/income ratio makes me ineligible for a loan, I will have a tax liability of 30K (penalities and considered income from IRA), no attorney will help without a retainer's fee, I have phoned FTC, FBI, State Board Of Realtors, HUD, State commisioner of Banking in both States, County police, state's attorney's office, attorney general's office, DOJ, news/tv studios, President of the real estate firm - he hung up in my face, told me it was all my fault, I should not have left without my money?  
I listed my house for sale with his company and expected that they bring me qualified buyers, and that they at least find out if the buyer is qualified before the closing date.  If they had done their job, the lender, the buyer's agent, and my agent would have know within a day or so that this woman was using a fake ss#.   Please HELP

Answer
I am not surprised that no attorney will take your case without a substantial retainer. You have a very complicated fact situation. I would advise you to continue to shop around for an attorney who would consider taking your case on a contingency fee basis. Failing that, you will either have to come up with a retainer or consider, at your peril, representing yourself.