receiving down payment back

[anxious anne]

I am in Long Island, New York. We wanted to purchance a home in another town and put down a substantial down payment at contract. We were told by our lawyer that the only way we would get it back is if the bank declined our mortgage. Our income and credit was fine so we did not think that would happen. 5 days before we thought we were going to closing, I called the bank to find out what was happening with the mortgage and was told it was declined due to the house being a 2 family residence and it did not appraise. Nothing was sent to me, so I asked for a letter and the bank sent me a copy of the mortgage app (notice of action taken, statement of reasons and counteroffer page) with only one small sentence that read " collateral property does not meets banks guidelines". With this and the fact that the bank only gives this out, not any formal letter, can I recieve my down payment back and how long is the sellers attorney legally allowed to hold my deposit in escrow?

[HomeGuru]

Originally Posted by anxious anne

I am in Long Island, New York. We wanted to purchance a home in another town and put down a substantial down payment at contract. We were told by our lawyer that the only way we would get it back is if the bank declined our mortgage. Our income and credit was fine so we did not think that would happen. 5 days before we thought we were going to closing, I called the bank to find out what was happening with the mortgage and was told it was declined due to the house being a 2 family residence and it did not appraise. Nothing was sent to me, so I asked for a letter and the bank sent me a copy of the mortgage app (notice of action taken, statement of reasons and counteroffer page) with only one small sentence that read " collateral property does not meets banks guidelines". With this and the fact that the bank only gives this out, not any formal letter, can I recieve my down payment back and how long is the sellers attorney legally allowed to hold my deposit in escrow?

**A: so what did your lawyer tell you?

[anxious anne]

My lawyer is not telling me much. Just that he is "working on It". The last letter to the sellers lawyer was over a month ago with the banks version of the declined letter attached. I have been nagging the bank for a more extensive version, but they insist they are only required to give me what they already sent me. Since the date of the contract is going to be a month past next week I get more worried.

[HomeGuru]

Originally Posted by anxious anne

My lawyer is not telling me much. Just that he is "working on It". The last letter to the sellers lawyer was over a month ago with the banks version of the declined letter attached. I have been nagging the bank for a more extensive version, but they insist they are only required to give me what they already sent me. Since the date of the contract is going to be a month past next week I get more worried.

**A: what is to work on? Does the contract contain a financing contingency or not?

[anxious anne]

Yes , the contract does have a financial contingency. However the sellers lawyer wants something more in writing than what the bank gave us. As of today , my lawyer wrote to the bank asking for more but I do not believe the bank will give any information to any party other than us and I have already asked for the appraisal.

[HomeGuru]

Originally Posted by anxious anne

Yes , the contract does have a financial contingency. However the sellers lawyer wants something more in writing than what the bank gave us. As of today , my lawyer wrote to the bank asking for more but I do not believe the bank will give any information to any party other than us and I have already asked for the appraisal.

**A: the 2 lawyers are dingbats. That letter from the lender should suffice.

[anxious anne]

OK.... I agree. I also believe they want to go to litigation so they can charge us all more money. So my original question is ...Does any one out there know How long they can legally hold my money in escrow ?

[Ohiogal]

Originally Posted by anxious anne

OK.... I agree. I also believe they want to go to litigation so they can charge us all more money. So my original question is ...Does any one out there know How long they can legally hold my money in escrow ?

Until the sellers sign a release and you sign a release, or until a court demands it be released.

[anxious anne]

Is there a time frame on that? Since my lawyer does not seem to be moving on this at all. It sounds like I may have to go into litigation to put a fire under him. I heard that if it goes into litigation it can take up to 2 years.

[HomeGuru]

Originally Posted by anxious anne

Is there a time frame on that? Since my lawyer does not seem to be moving on this at all. It sounds like I may have to go into litigation to put a fire under him. I heard that if it goes into litigation it can take up to 2 years.

**A: you heard right. Get a new lawyer.

[anxious anne]

with what money?

[HomeGuru]

Originally Posted by anxious anne

with what money?

**A: shall we take up a collection for you?

[anxious anne]

HomeGuru, you really have not been helpful. You are just MEAN. I do feel sorry for you though, since you have no life.

[HomeGuru]

Originally Posted by anxious anne

HomeGuru, you really have not been helpful. You are just MEAN. I do feel sorry for you though, since you have no life.

**A: I am so deeply sorry that the truth hurts so much.

[pojo2]

How do we know with what money no one here knows your financial situation.

You may think your originated the reply about HG being mean but it is used quite often when the poster does not like the replies and truth that is dispensed.