Keeping the deposit on house purchase...

[boyandhisdog]

What is the name of your state (only U.S. law)? Florida

I was in the process of selling my home until it fell through three days before closing scheduled for 1/29/09 due to the buyer's undisclosed visa issues and therefore inability to close an FHA loan. This was apparently known to the buyer and loan officer as a potential problem all along but not disclosed to us but later revealed in an e-mail we were made privy to.

Per the terms of the contract, if the buyer failed to notify me in writing within 20 days of contract signing (12/03/08) of an inability to find financing, the $5000 deposit was forfeit- strike one. Further, during that time, Buyer did provide a letter of comittment and the contract also states that if the Buyer provides a comitmment letter any implied loan contingency of the contract is no longer valid and the deposit is forfeit- in my mind strike two.

I have written a demand letter to the escrow attorney holding the funds. What else can I do now to get what is rightfully mine- the 5K? If they fail to respond or fail to agree to refund my deposit, what is my next best step.

Given the above regarding the visa issue, do I have any leverage with a duty to notify or failure to perform at this stage?

Thanks in advance,
Rob

[HomeGuru]

Originally Posted by boyandhisdog

What is the name of your state (only U.S. law)? Florida

I was in the process of selling my home until it fell through three days before closing scheduled for 1/29/09 due to the buyer's undisclosed visa issues and therefore inability to close an FHA loan. This was apparently known to the buyer and loan officer as a potential problem all along but not disclosed to us but later revealed in an e-mail we were made privy to.

Per the terms of the contract, if the buyer failed to notify me in writing within 20 days of contract signing (12/03/08) of an inability to find financing, the $5000 deposit was forfeit- strike one. Further, during that time, Buyer did provide a letter of comittment and the contract also states that if the Buyer provides a comitmment letter any implied loan contingency of the contract is no longer valid and the deposit is forfeit- in my mind strike two.

I have written a demand letter to the escrow attorney holding the funds. What else can I do now to get what is rightfully mine- the 5K? If they fail to respond or fail to agree to refund my deposit, what is my next best step.

Given the above regarding the visa issue, do I have any leverage with a duty to notify or failure to perform at this stage?

Thanks in advance,
Rob

**A: you need to refund the deposit.