Seller Wanting to Keep $35k Escrow Deposit

[Maximo]

NY

Contracted to by a house in 7 months ago put $35 in escrow, commitment expired do to seller not being able to get proper co's which were a condition of sale.

we waited 5 months for them t0 get COs.. we went to update the commitment and they would no longer do the loan due to new change in lending guidelines... We then went and obtained a commitment from a new bank which also wound up falling through.

We tried a few others with no success. Our credit & income was not optimal & it seems to have just gotten harder and harder because of all the new strict guidelines.

The other party has sent a couple "time is of the essence" letters which we rejected. Now they're looking to put the escrow money with the court and start to litigate as if they have some right to our deposit.

My atttorney wants a $7,500 retainer to litigate and says it can take up to 2 years.
Seller doesn't seem to be too willing to negotiate. Need advice.

I was thinking of filing a lis pendence... since they're relisted the house and hope they'll negotiate then.. Is that a good Idea?

Thanks

 

[seniorjudge]

My atttorney wants a $7,500 retainer to litigate and says it can take up to 2 years.

That's cheap and fast.

Go for it.

 

[JETX]

I was thinking of filing a lis pendence... since they're relisted the house and hope they'll negotiate then.. Is that a good Idea?

Your post is missing a critical element..... does the purchase agreement include a financing contingency??
If so, and if the financing has fallen through as you claim, you should be able to get the deposit refunded.
And yes, if you file a lawsuit, absolutely file a lis pendens with the county clerk or registrar.

 

[seniorjudge]

Your post is missing a critical element..... does the purchase agreement include a financing contingency??
If so, and if the financing has fallen through as you claim, you should be able to get the deposit refunded.
And yes, if you file a lawsuit, absolutely file a lis pendens with the county clerk or registrar.

Tell me how this kind of lawsuit would affect the title to this land?

(Yes, I know the answer; I want to get more ideas.)

Thanks.

 

[Maximo]

Lis Pendence

Thanks for the replies.

If I file a lis pendence.. does this mean when the seller goes to sell home it will be on the title? And if so wouldn't they have to place a bond or something for twice the amount in order to sell the property and protect the purchaser?

2nd Question,
Can I file this for a higher amount than the $35k.. lets say $45k to cover legal fees etc..
not that I'll get that but it could possibly be a bigger deterent for a new purchaser and a good reason for seller to negotiate a settlement.


3rd question
What else can I do to tie up the sale of this house or cause the seller to want to negotiate.

 

[JETX]

If I file a lis pendence.. does this mean when the seller goes to sell home it will be on the title?

The lis pendens is filed with the county clerk or registrar. It is noted on the current property title and will be noticed if a title company tries to open a file on the property. They will refuse to issue a title policy with the lis pendens in place, thereby blocking any potential sale.

Can I file this for a higher amount than the $35k.. lets say $45k to cover legal fees etc..

No.

What else can I do to tie up the sale of this house or cause the seller to want to negotiate.

Hire a local attorney.