Can Earnest money be returned? See scenario below.?

Deal Score0

Looking to buy a condo for my mother in law, I put down $ 2,500 as earnest money.

– The clause from Pulte Homes had a 15 days period for returning the earnest money in case we decided otherwise.
– In order to receive their incentive package we needed to sign with Pulte Mortgage.
– In order to expedite the process and because I have a 743 credit score I went through with the loan application as the borrower.
– Later found out that I couldn’t be a borrower in the loan because I was living a few miles away from the condo and could be interpreted as an investment.
– After that, my mother-in-law was set as the borrower. She’s retired, live in a property overseas, has no debts (none) and collect alimony from her ex-husband.
– The interest rate offered to my mom-in-law was 7.375% for a 30yr fixed loan with PMI and with a discount point fee.

At that point Pulte didn’t offer further assistance. Consequently, she didn’t want to proceed with the closing.

I’m currently attending a CSU here in CA and the tuition here per quarter is $ 1115 and I have not paid it fully….I still owe about $ 248 but my parents do not have any funds because they’re paying the mortgage and about $ 1500 worth of utility and credit card bills…thankfully he have not skipped paying any credit cards and will not try to skip any anytime soon….

I’ve already borrowed the maximum subsidized and unsubsidized loans and I still need $ 248 to pay or the school would drop my classes this summer quarter…I am taking chemistry (the 3rd part of general chemistry sequence) and Logic…and if I get chem dropped, I wont get the 5 unit I need and will have to take it again next spring (not until April 2009)…..since the finals is about 3 weeks from now, I am not sure if I can pay it by sept 1 (chem final)…

I can’t EVEN apply for private loans because my parents’ credit score is below 500 and the lender requires a credit more than 700….I have no qualified cosigner…and I am not qualified for perkins loans…since it’s summer, the school does not offer cal grants…

WHAT AM I SUPPOSE TO DO? I DO NOT WANT TO TAKE CHEM NEXT SPRING since I am so ready to take Organic this fall (Chem major)….although I am all set for next 3 quarters due to the $ 2772 cal grants offered……

PLEASE HELP!
NO JOB!……it’s friggin 3 weeks away!

8 Comments
  1. Reply
    Jack Mahogoff
    February 7, 2011 at 5:05 am

    You need to take that up with Pulte Homes. If your 15 day period has expired, good luck.

  2. Reply
    stargazer6440
    February 7, 2011 at 5:41 am

    if the 15 day period isn’t over they should return it…regardless they need to return you deposit because they didnt sell you the property…the whole “well we need to make a profit” thing on their part doesn’t wash…not by a long shot…they’re not in the business of getting money handed to them for no goods or services in return…no one is..(although one would think people are in todays unscrupulous social enviroment)…in any event if they don’t return your deposit hire an attorney…

  3. Reply
    newmexicorealestateforms
    February 7, 2011 at 6:23 am

    Sounds to me that your original actions in giving the earnest deposit were premised on certain actions by not just you but the seller and that established the meeting of the minds. It now sounds that all the circumstances have changed and there is no original meeting of the minds that can be used to proceed with the transaction.
    My opinion is that they should simply give you back the earnest deposit unless they want to show up on the legal advance sheets.
    Buena Suerte

  4. Reply
    Not Laughing w/ U
    February 7, 2011 at 7:21 am

    There is usually a clause in the earnest money agreement that it is dependent on your actually being able to obtain the loan.

  5. Reply
    teran_realtor
    February 7, 2011 at 8:12 am

    Ask the Realtor representing you how to proceed.

  6. Reply
    Peter N
    February 7, 2011 at 8:46 am

    You should see a real estate attorney about that. It all depends on how the contract was written. The rate offered for you mother-in-law doesn’t look that bad for her situation. But I do understand you were looking for something better.

    If your condo is worth less than the new Pulte Home, then there is a very good chance of considering your new home a primary residence, not an investment property. In the end, it is up to the underwriter to determine how the property is classified, but in my experience, as long as you are upgrading, it should be fine.

    Email me with any questions: peter@chicagobancorp.com. I do financing all over the country, and would be more than happy to help you if you still want that home.

  7. Reply
    txrealestateagent
    February 7, 2011 at 8:52 am

    Not knowing all of the specific details, here is an idea.

    Tell your mortgage company that you DO want to buy the property as an investment. This will cause your interest to be higher.

    Once purchased, allow your mother to live there. Let her pay rent in the amount of the mortgage (if that was your original intent).

    Based on what you have written, that should keep the underwriter happy.

  8. Reply
    Found-1
    February 7, 2011 at 9:02 am

    most people get jobs to pay for things. maybe you should try this.

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