Legal Question in Real Estate Law in Pennsylvania
Dispute over escrow deposit.
$10,000 escrow deposit made in sales agreement to
purchase a house [%5,000 to be non refundable in event Mortgage is Denied.] I agreed to this because of high confidence in ''creditworthiness'' with this lender. However, ''Condition'' in written Mortgage Commitment required property to appraise at almost full sale price. Appraisal came in $24,000 below sale price. Seller would not extend ''closing'' long enough to get second appraisal. Took house off the market and ''claimed'' $5,000 escrow saying ''Mortgage was denied''. Mortgage Lender said repeatedly that ''Mortgage was not denied.'' My position is that escrow deposit was not made to support appraisal process, but only to support my ''creditworthiness''. QUESTION: In ''mortgage terminology'' doesn't the phrase ''Mortgage Denied'' specifically relate to ''not qualifying as creditworthy''? Is it possible that my escrow must be forfieted because the property didn't meet the ''conditions'' of the mortgage commitment?! Doesn't the ''written commitment'' alone satisfy the escrow's ''Mortgage Denial'' clause? --Money is still in escrow.--
2 Answers from Attorneys
Re: Dispute over escrow deposit.
I agree with attorney Gleaner. My firm just handled a similiar matter and I got my client her entire $2,000 escrow back. We are a Pittsburgh based firm. If you are located near us please contact me and we will work on getting you your money back.
All initial consultation are at no cost.
Brandon Barnett, Esq.
412-916-1677
Re: Dispute over escrow deposit.
In my opinion, you have done what needs to be done. The reason this deal did not come through is because of a failure of the Seller's property to meet the value required. This is not your fault and therefore not a reason for the loss of your escrow. Keep in mind that this advice is based purely on the little bit of information that you have given to me. There may be other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. Since it appears that you have not retained an attorney, before you take any further action, you should contact an attorney (either me or someone else) to discuss your matter in more detail. Only then will you be able to rely on the advice. I will be happy to assist you. However, you need to call me at 856-546-8010. If you mention LawGuru, there will be no charge for your first consultation. Good luck! Rob Gleaner
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
