Earnest money check bounced

[Nottobeavictim]

AlabamaWhat is the name of your state?
The buyer for our home had a contingency in the contract on getting a conventional loan. Two weeks before closing, our real estate agent called to say that the buyer had given false information on her loan documents and could not qualify to get a loan. We were told upfront that the lady was preapproved. And then my agent went on to tell me that the lady's earnest money check bounced! Our agent seems to think we could take the lady to Small Claims Court. The contract states that if her check is returned because of insufficient funds, we can cancel the contract and she forfeits everything. What I am wondering is this: isn't the real estate agency somewhat responsible? Shouldn't they have cashed the check first and then deposited it, or let us know sooner that it had bounced? Why would they even accept a personal check from her when we had to give a cashier's check for the earnest money that we gave on the house we wanted to buy. That's another thing - we're out of our earnest money and the money we spent on a home inspection. Do you think there is a chance we could take this lady to Small Claims Court or even put a judgement on her?

[HomeGuru]

Originally Posted by Nottobeavictim

AlabamaWhat is the name of your state?
The buyer for our home had a contingency in the contract on getting a conventional loan. Two weeks before closing, our real estate agent called to say that the buyer had given false information on her loan documents and could not qualify to get a loan. We were told upfront that the lady was preapproved. And then my agent went on to tell me that the lady's earnest money check bounced! Our agent seems to think we could take the lady to Small Claims Court. The contract states that if her check is returned because of insufficient funds, we can cancel the contract and she forfeits everything. What I am wondering is this: isn't the real estate agency somewhat responsible? Shouldn't they have cashed the check first and then deposited it, or let us know sooner that it had bounced? Why would they even accept a personal check from her when we had to give a cashier's check for the earnest money that we gave on the house we wanted to buy. That's another thing - we're out of our earnest money and the money we spent on a home inspection. Do you think there is a chance we could take this lady to Small Claims Court or even put a judgement on her?

**A: it would not be worth going after her.

[Nottobeavictim]

WHY wouldn't it be worth going after? $500 is a lot of money to me. And she cost me more than that! Besides the fact that if I don't do something, I'm letting her get away with this. She LIED. She wasted my time and cost me money - something I do not have a lot of.

[compiler]

Originally Posted by Nottobeavictim

WHY wouldn't it be worth going after? $500 is a lot of money to me. And she cost me more than that! Besides the fact that if I don't do something, I'm letting her get away with this. She LIED. She wasted my time and cost me money - something I do not have a lot of.

Ignore it. That is just his another empty and hollow “answer” though he likes adding something after each question.

[panzertanker]

Originally Posted by Nottobeavictim

She wasted my time and cost me money - something I do not have a lot of.

That is why it would not be worth you persuing. It will cost you MORE time and MORE money, precious commodities in your world....

HG is correct.
You COULD go after her. But it will not be worth it.

[HomeGuru]

Originally Posted by Nottobeavictim

WHY wouldn't it be worth going after? $500 is a lot of money to me. And she cost me more than that! Besides the fact that if I don't do something, I'm letting her get away with this. She LIED. She wasted my time and cost me money - something I do not have a lot of.

**A: would you spend $5000 in legal fees to go after $500?
Then you may as well go downtown and sell $10 bills for a dollar each.