Expert: William Cady Date: 5/17/2007 Subject: Earnest money
Question My husband and I wrote a $500 earnest money check on a new inventory home in San Antonio. Beacuse of some past credit flaws the underwriter turned us down for the loan. My husband signed the release papers for the house to be put back on the market. About 2 weeks later our $500 check was desposited into the homebuilder's account. Shouldn't we receive that $500 back since the lender turned us down?
Answer I am going to answer with a couple of question, and you may feel free to write me back:
1)Was there a third party financing addendum you did along with the regular contract? That document says you will get your money back if you are not approved for the loan and give written notice to the lender within a certain number of days.
2)If there was a third party financing addendum did you give written notice within the time frame?
3)Have you talked with the builder about this?
4)Were you using your own lender or a lender that the builder encouraged you to use?
