We are newlyweds who put down an initial deposit on a new home in CA. We had all the intentions of moving in until my husband had to quit his job. It had a lot to do with the falling economy. We decided that we needed to forfeit the house because the loan company changed their mind and asked us to make a 20% down payment, which we couldn't make. We already signed the contract that promised we would not get back our initial deposit at our own default. But, it's a beautiful and fast selling condo. I know the builder (pretty big name) would have no problem selling it. There's even a waiting list of people for the house. Also, the house isn't finished being built yet and won't be completed until next month. We haven't made any upgrades to it either.
Is there anything that could help us get our deposit back? We've asked and they tell us to look at the contract, which is true but we still want to try.
I also wanted to mention that my husband had to quit because his supervisor wasn't paying him for over a month. He had to quit because he wasn't getting paid. His supervisor keeps asking my husband to wait, but we can't with a house to buy.
Originally posted 2009-08-07 15:36:19. Republished by Blog Post Promoter
Buy Home No Credit 7th August 2009 4:04 pm
Buy Home No Credit
I think you are SOL.
Sell Your Own Home 7th August 2009 6:47 pm
House For Sale By Owner
read the contract…they probably can keep the deposit. one thing to check are your “vital clauses.” if you have a section that says you must be able to qualify for a loan (and now you don’t because your husband quit his job) then you could be able to back out and get you deposit back. another clause would be the appraisal clause. if an appraisal was done right now (before completion) it probably won’t appraise at the agreed purchase price and you may be able to cancel the contract and get your money back. (make sure you check with an attorney who understands real estate law)
however you still have options without cancelling the contract. if someone else wants to buy the condo you can transfer your contract to the new buyer and collect the “deposit” from them. you might try shopping for a new lender who has some different options not requiring a 20% down. again, read the contract…it should give you a couple of ideas.
sell+home+fast 8th August 2009 9:50 am
Buy Home No Qualifying
initial downpayments should be refundable, since
u didnt get the loan, and so u will not have any house.
just get your refund.
sell+home+fast 10th August 2009 1:43 pm
Sell Your Own Home
Builders and developers have a rock solid contract to keep your deposit if you change your mind or back out of the contract for whatever reason. It is highly unlikely that you will get your deposit back.
The only recourse you have is if you put a contingency in your contract that says you must qualify for a mortgage. Since you now don’t qualify because your husband quit his job (!), you might be able to get your deposit back.
Sell Home Fast 13th August 2009 8:14 am
Buy Home No Credit
If you are truly correct in your assumptions of the desirability of this particular condo. engage a real estate agent to sell it for you before it is completed. Yes, you CAN do that, even if the developer doesn’t like the idea. Simply find a buyer who will close the purchase instead of you closing the purchase. Odds are high that the real estate fee will be far less costly than the forfeiture of your 20% deposit.
Check you contract carefully to insure that the above is not a contract violation.
House For Sale By Owner 13th August 2009 2:06 pm
sell+home+fast
They are not required legally to refund that to you. You say there is a waiting list, try auctioning off your interest, for say your initial down payment
Buy Home Bad Credit 13th August 2009 9:17 pm
sell+home+fast
Basically you are SOL. My question what did the falling economy have to do with your husband QUITTING his job especially in today’s economy? Quitting makes absolutely no sense If he had to quit his job sounds more like he had a choice of being fired for doing something wrong or going quietly. Second they asked for 20% down because the worth of housing has dropped dramatically in CA and they are protecting their investment as in the home is not worth what is was when you contracted on it.(CA values have dropped 20-35%) Doubt if there is a waiting list in todays market so stop the BS