Legal Question in Real Estate Law in Illinois

Re: Earnest Money

If you acted correctly, usually need to apply for mortgage within 5 days of contract acceptance and then give notice by the mortgage contingency date, then you're correct. That's the whole reason for the "mortgage contingency." It may be time to record your contract and file suit in small claims court.

Re: Earnest Money

If you did everything required of you in your contract, you are entitled to a refund. If the seller refuses to relase your earnest money, you will need to file suit in court (unless there is an arbitration clause inthe contract), whether it is small claims, depends on the amount of the earnest money. Also, if a broker is involved, you will need to also name the broker and his or her company in the suit if the earnest money is being held by the brooker.

Good luck

Re: Earnest Money

The answer depends on what your contract says. The most current form in use in this area is the so-called "4.0" form. That form probably wouldn't cover you in your scenario because it provides that failure to qualify for a loan due to a failure to sell your home is not an acceptable "out". In other words, it's considered a "back door" home sale contingency because it's allowing a buyer to use the mortgage contingency as if it is a home sale contingency.

So in short, it depends on what your contract says but also (as the other answers state), what was done by or for you (if notices were sent out in time, etc.).

Contact me if you have any other questions. Good luck!