Bounced the earnest check

[Cheqsixx]

Selling a house in Alabama.

We had a signed contract with a buyer, closing date was set, inspection pending, appraisal shortly thereafter. The buyer was pre-approved. They basically had the house money in their back pocket for the purchase. Everything was in line to be done. The listing online was changed to "under contract", so of course we had no one looking, which was expected. The buyer gave our broker a $1k earnest check. A week later, the earnest check bounced. The buyer immediately backed out of the purchase with absolutely no explanation other than they don't have the money to move, and has made no attempt to repay the earnest money. They have gone so far as to hang up on their own broker. We are abosolutely ready to file suit to get our earnest money, which is our right to do.

I need advice on how to proceed. I am ready to do everything up to and including wage garnishment. I need to know where to turn to do this fast.

 

[pojo2]

The buyer was pre-approved. They basically had the house money in their back pocket for the purchase.

Not necessarily


The listing online was changed to "under contract", so of course we had no one looking, which was expected.

Not necessarily

I need to know where to turn to do this fast

Go to small claims court but the process is not going to be that fast as in you have your 1K in a couple of weeks.

Might just be they finally tried to fianlize or get started the final loan process and found out they weren't so qualified after all, so is there a contingency clause in the contract concerning them obtaining a loan?

 

[Cheqsixx]

Yes, necessarily. The buyer was 100% pre-approved. That had already been confirmed. So no contingency clause would apply.
Seriously, it was a DONE DEAL.
Update....
We are firing our realtor today for unethical representation (unrelated to the jackasses that bounced their check). We spoke with another realtor (that we know personally) who has advised us that it is actually our broker that is responsible for the earnest money. We are going in this morning to demand our contract be terminated for bad faith, etc ect, and to get our earnest money straight from them. The broker can then go after THEIR earnest money directly with the buyers that bailed. Im not wasting my time/money filing suit over something our realtor/broker should be represeting us for in the first place. Real estate agents are held to a very strict code of ethics, which we feel has been breached. Again, a different story than the bounced check.

 

[Realtorgrrl]

Yes, necessarily. The buyer was 100% pre-approved. That had already been confirmed. So no contingency clause would apply.
Seriously, it was a DONE DEAL.
Update....
We are firing our realtor today for unethical representation (unrelated to the jackasses that bounced their check). We spoke with another realtor (that we know personally) who has advised us that it is actually our broker that is responsible for the earnest money. We are going in this morning to demand our contract be terminated for bad faith, etc ect, and to get our earnest money straight from them. The broker can then go after THEIR earnest money directly with the buyers that bailed. Im not wasting my time/money filing suit over something our realtor/broker should be represeting us for in the first place. Real estate agents are held to a very strict code of ethics, which we feel has been breached. Again, a different story than the bounced check.

The deal is only done when you walk out of the title agency with your check! No buyer is 100% approved unless you have a letter of lender committment in your hand period and you usually get that in the wee hours prior to closing. A pre-approval is just that...subject to contingencies of the lender like employment verification, credit score/history, loan to debt ratio etc...

 

[pojo2]

The deal is only done when you walk out of the title agency with your check! QUOTE]

EXACTLY!

I think the OP is in for some educating moments ahead.