R
rkthomas
Guest
I have my home for sale by owner. 8 weeks ago, I had and offer on the house from a 1st time buyer. He told me that he was pre approved and that he just had to wait for his bond money to come in. He gave me an earnest money check for $500. I should also tell you that he agreed to buy all of my furniture. Two weeks in to the deal, he called and said that it looked like he would be able to close sooner than expected and wanted to know if we could be out of the house in 1 week. We were looking to purchase a home and decided that we didn't have enough time to do so, so we decided to rent. After confirming with him and the mortgage lender that he would for sure be qualified, we put down a deposit on a rental. We had to act fast because of the scarce availability of homes that allow for a large outside dog. We signed a six month lease assuming we would close on our house a few days later. We also confirmed with the buyer that he infact was purchasing our furniture and he said with out a doubt that he would. We purchased a new sofa and loveseat so we would have something to sit on. So far in deposits, rent and furniture we have payed out approx. $2000.00. The day before we were to close, the underwriters denied him the loan because of undisclosed debt information he failed to leave off of his loan application. Now he wants his earnest money back and is threatening to take us to court if he has to. I feel that we have been misled by his misrepresentation, and now whe are not only out the $2000.00 but also we still have a mortgage, 2 sets of utilities, 2 sets of furniture and 8 weeks that our house spent off the market. Help! Do I have the right to keep his money?