State: California


Hello,
Here is the scenario. The prospect and seller signed on the deal. The prospect needed to qualify for the loan PRIOR to the closing. The prospect made a deposit and told the seller he will be ready within 40 days.

The first loan request was rejected because of low down payment.
The second loan request was also rejected.

Forty days has past.
The seller does not want to continue with the sales because he lost two months of possible rent income due to the waiting.


So who keeps the deposit money?
The prospect said 40 days. The deposit is held at the escrow company. Thank you inadvance.

http://www.blankrome.com/publications/Articles/ominsky_088.asp

Don't know if this applies differently in cali, but it seems, as would be right, that the deposit is forfeited if the obligations of the agreement are not met.

Deals can go bad, its true... but if the money isn't forfeited by the failure to meet the obligations than what meaning is there in the deposit anyway??

I appreciate your response kp2171. :cool: