Signed offer to purchase. told seller my mortgage pmt too high, and demanded my earnest money back. can she hold it from me?
1 Answer from Attorneys
If your attorney timely withdrew your offer in writing due to failure of one of your contingencies, you would normally get your earnest money back, but I could not guess in your case without reading the offer, the cancelation paperwork, and the proof that the cancellation was properly served upon the seller. A proposed mortgage payment merely appearing to be too high to you may not have been enough, however. Rather, the written terms of the financing contingency in your offer should have specified the exact interest rate, term and down payment you had in mind. If the financing was denied or approved at a higher rate, you might have had a valid reason to cancel. Exercising that right correctly, however, requires you to successfully get over several procedural hurdles, which task is best left to a professional, assuming that you are not a real estate professional. Verbal notice is normally not sufficient in real estate transactions.
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