Earnest Money Deposit
We put down an earnest money for deposit on the purchase of a property (single family home which will be our primary residence). We have submitted several loan applications and have been turned down. The seller is exercising his right to have us apply at a lendor of his choice. It appears that the lender of his choice is making concessions in order to force us into a loan which would then allow the seller to keep the earnest money. Isn't this illegal?
1 Answer from Attorneys
Re: Earnest Money Deposit
The earnest money is by law applied in reduction of the purchase price or the mortgage balance. Failure to do so is a violation of CO law.
Do not allow them to fail to apply it in reduction of one or the other.