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Can we get our deposit back if our home loan won’t fund?

On May 3, 2009 / By Real Estate Law Help / In Maryland-Real-Estate-Law

We have entered into a contract to buy a short sale house. We found out we were pregnant 3 days before our contract was officially accepted. This changes our income. We told the sellers agent so she could pursue one of her other offers. She is mad and threatening that the sellers will keep our deposit. We didn’t pursue funding knowing it wouldn’t fund- we thought that would save everyone 2 weeks. As it stands now- we are in breach because we didn’t pursue funding within the time given. To top it off it appears the house won’t appraise for the sale price. It is a beautiful house at a great price- but we just can’t afford it now. Anyone know Maryland real estate law or referral for a good lawyer?

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5 Responses to “Can we get our deposit back if our home loan won’t fund?”

  1. _Ask_Me_Anything_ said:

    May 03, 09 at 8:40 am

    Since you backed out, I think you are going to lose the deposit. You breached the contract.

  2. Fort_Sill_Army_Wife said:

    May 03, 09 at 1:38 pm

    You signed the contract, the only thing you can do is pray the bank rejects you…other wise you can be sued and they will keep your deposit. The only contingency in a contract is if you fail to get funding by not being approved, not by becoming pregnant

  3. ___ said:

    May 03, 09 at 2:44 pm

    Once there is a signed contract, and it is you (as the buyer) that backs out of the deal..for whatever reason..you forfeit your binder deposit. If the seller is the one to back out of the deal, *then* you would be able to get the deposit back. In your case, however, the point is moot. You will not be getting your deposit back.

  4. Hertha said:

    May 03, 09 at 6:18 pm

    Once the contract was officially accepted you buy or lose the deposit. Your deposit pays the cost of the house going back on the market.

  5. goldshire1 said:

    May 03, 09 at 6:33 pm

    You have made a couple of mistakes:

    1. You said you found out you were pregnant 3 days BEFORE the contract was accepted and you knew you could not go through with the purchase… you should have rescinded your offer immediately. You are not bond by the contract until it is officially accepted and that would have been the time to back out.

    2. Most offers are written with contingencies for example the sale of the property is contingent on the house appraising for at least the purchase price. Contingencies offer you (the buyer) a way out of the contract & a way to get your deposit back. Contingencies are only good for a limited time frame so if you wait too long then you lose your opportunity to back out and get your deposit back.

    Obviously I can only speculate about what your purchase contract says but if you are in breach on contract (like you say you are) then it is probably too late to get your deposit back.

    Let this be a lesson. You should have been on top of this from the beginning and officially canceled your contract before it got to this point.

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