Legal Question in Real Estate Law in Maryland

earnenst deposit

I was pre- qualified for a 295,000 loan in January 2007 under the assumption that I could use undocumented income from my parents. Since my income was extremely low the in house lender suggested undocumented income as a way to pre-qualify and be eligible for the unit. I then put down 4425 $ as an earnest deposit and but when i went to get approved, I was told that undocumented income is no longer an option for loans and I was denied. I sought financing elsewhere but was told that I needed to put down 29,500$ to be approves. NOT POSSIBLE.I sent a letter to the builder requesting my money back due to lack of financing and I was denied and they state that if I am terminating the agreement then I am in default and I am responsible for the earnest deposit and I have to pay another 4425 for the promissary note. I am a first time home buyer and I have no place to momve next year and I will be out of 8000$. I live in the state of maryland and it is a condo community.PLease help!!!!


Asked on 11/24/07, 6:36 pm

1 Answer from Attorneys
Eugene Policastri Bromberg, Rosenthal, LLP

Re: earnenst deposit

Unless there is a financing contingency in your contract - and I doubt there is if this is a builder's contract, then if you fail to close for whatever reason you run the risk of being sued for damages for breaching the contract. As there has been a recent downturn in the real estate market, it is likely that the builder will not be able to sell for the contract price.

You should contact counsel right away to review your contract with you and to try to negotiate a settlement with the builder.

Read more
Answered on 11/25/07, 3:52 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Maryland