Legal Question in Real Estate Law in Illinois
Can we get our earnest money back?
I signed a contract to purchase an IL townhome for $330k. The mortgage contingency stated that transfer of the property would occur if mortgage financing committment was obtained.
We were initially approved for financing of $330,000 contingent upon the underwriters approval of the appraisal report. The appraisal valued the home at $330,000 but stated in the addendum that the home was in a declining market and the underwriter denied the loan.
We attempted financing with another lender and were approved for $330k but the appraisal valued the home at $312k.
The seller is unwilling to renogiate the purchase price and we're unable to obtain the financing for the requested price.
We're ready to move on and receive our earnest money back.
The seller's attorney is trying to ''force'' us into obtaining our financing through a lender she knows.
Are we obligated to use her lender or do we have a right to walk away and get back our earnest money?
1 Answer from Attorneys
Re: Can we get our earnest money back?
It sounds to me as if you have made a good faith effort to obtain financing.
However, without having the agreement to look at, I can not state that with any degree of confidence.
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