Keeping Escrow

What is the name of your state? New York

I recently went to contract selling my home. At that point, 10% or 55,000 was deposited into my attorneys escrow account. All went well with inspection and my buyers had until July 15 to present a mortgage comittment. The deadline passed and we did not hear from the buyers. On July 26, we found out that the buyers could not get their mortgage and they are looking for refund of escrow. My contract stated that if we did not her from the buyers by the 15th, it would be assumed that they got their mortgage.

As a result, I have moved most of my belongings and rented another home in anticipation of closing. I have approx $8,000 in out of pocket damages. Since they missed the deadline for notification, are they required to close or if not, can I keep the escrow? Any help you could provide would be greatly appreciated.

Rob

[HomeGuru]

Originally posted by Rob Wisel
What is the name of your state? New York

I recently went to contract selling my home. At that point, 10% or 55,000 was deposited into my attorneys escrow account. All went well with inspection and my buyers had until July 15 to present a mortgage comittment. The deadline passed and we did not hear from the buyers. On July 26, we found out that the buyers could not get their mortgage and they are looking for refund of escrow. My contract stated that if we did not her from the buyers by the 15th, it would be assumed that they got their mortgage.

As a result, I have moved most of my belongings and rented another home in anticipation of closing. I have approx $8,000 in out of pocket damages. Since they missed the deadline for notification, are they required to close or if not, can I keep the escrow? Any help you could provide would be greatly appreciated.

Rob

**A: in general, real estate contracts contain a mortgage financing contingency clause. Thus, the Buyer has a reason to terminate and is entitled to the refund of his earnest money deposit back.
It appears that your contract was not written correctly and no one (you, your attorney etc.) was monitoring the performance of the contract.

What about the lack of the buyers to notify us timely??? That provision was clearly stated in the contract. We did request status (a closing date) via fax but they did not reply. Shouldn't I be entitled to at least my expenses incurred?

[HomeGuru]

Originally posted by Rob Wisel
What about the lack of the buyers to notify us timely??? That provision was clearly stated in the contract. We did request status (a closing date) via fax but they did not reply. Shouldn't I be entitled to at least my expenses incurred?

**A: I cannot advise you further since I do not have your contract to review. Have your attorney review your contract and advise you accordingly. Good luck.