We put three thousand down and contributed 100 a month for 18 months towards the down payment on a home purchase but was unable to obtain financing due to the economic downturn. Is all or part of those monies refundable

Hello e:

Hopefully, you had a contract that says you CAN get it back. I would read it. It should tell you what rights you have, if any.

excon

It actually states that the 3 grand is NOT refundable but makes no specific reference to the 1800

was unable to obtain financing due to the economic downturn.Hello again, e:

You say WAS unable... Does that mean you moved out, and the seller/landlord won't return the money??

If that's so, sue them in Small Claims court for the $1,800 and let the judge decide. Small Claims is quick, cheap, and easy.

If you're still there and renting, that's a different story.

excon

Hello again, e:

You say WAS unable... Does that mean you moved out, and the seller/landlord won't return the money????

If that's so, sue them in Small Claims court for the $1,800 and let the judge decide. Small Claims is quick, cheap, and easy.

If you're still there and renting, that's a different story.

excon

Would I name the property management company as the defendant or the owner?(the owner resides abroad). And Yes we still reside at the home,but 30 days have passed since the lease/purchase contract has expired and we have not yet had contact from the prop.management company and have not been ask to sign a lease or rental agreement.Thank for your help

Hello again, e:

I wouldn't wait. Your contract expired but you're still there, hoping/expecting to continue renting?? Be sure to keep your rent current. If your contract reverted to a rental, then you need to pay. At the very least, you are a month to month tenant. I don't think suing your landlord while you still rent from him is a good idea. Plus, I really don't think you would be entitled to the money back for the same reasons you won't be getting your $3K back.

The owner took the house off the market hoping you would fulfill your end of the agreement. You didn't. The landlord should be compensated for taking his property off the market.

excon

I most lease/purchase contracts, the contract is written so that the money paid as a deposit is non-refundable. Think of it less as a deposit and more like a down payment. The court will look at it as if you did not live up to your end of the contract because you did not obtain financing.

Now, if the financing was denied because of the value of the home today, then when you purchased your home. You should have written in a clause that said that the home needed to appraiser for the contact amount. If that is not in there, then you are pretty SoL. Management companies know how to write contracts and these things are usually in there, or at least the things that protect the owner.

BTW: small claims court is not easy or free. You can be hit with paying the court fees and lawyer costs of the management company or owner because you are bringing a lawsuit against them.

If you have questions about your contract, then I suggest that you hire a lawyer to look over it. Lease/rental laws differ across the country, you should check within your area.

Hello again, e:

I wouldn't wait. Your contract expired but you're still there, hoping/expecting to continue renting??? Be sure to keep your rent current. If your contract reverted to a rental, then you need to pay. At the very least, you are a month to month tenant. I don't think suing your landlord while you still rent from him is a good idea. Plus, I really don't think you would be entitled to the money back for the same reasons you won't be getting your $3K back.

The owner took the house off the market hoping you would fulfill your end of the agreement. You didn't. The landlord should be compensated for taking his property off the market.

excon

I really do appreciate your advice but at the same time I hate to concede and absorb the entire loss. If I may the following is per text from the contract .
Lessee requests $100.00 of each lease payment to be credited towards purchase price of home at closing.$3,000.00 will be non-refundable but will go towards purchase price at closing

Lessee requests $100.00 of each lease payment to be credited towards purchase price of home at closing.$3,000.00 will be non-refundable but will go towards purchase price at closingHello again, e:

It says you requested. It doesn't say he has to or what happens if he does and you don't meet your end of the deal.

I don't think you'll win. I don't blame you for trying, and because the agreement is worded so loosly, who knows how a judge would rule on it? You've got to know, that if you sue, you can't stay.

In ordinary circumstances, small claims court does not allow lawyers. Yes, they can still ask the judge to award legal fees if you were to lose... But, he'd only do that if he thought your suit was frivolous, and I don't think it is, at all.

excon

Well, then you have to prove intent of the wording. It says nothing about what happens to that $100 if there is no closing. You could argue that since the next line states it is "non-refundable" that the prior line was meant to be refundable. But you have to get the judge to agree to that. In my court experience, that is a tall order because intent does not mean much. I am sure there is a CYA statement in there somewhere for the owner. What does the management co say when you ask for the money to be returned?

This is why I would not recommend a lease/purchase to my worst enemy!"

Hello again, e:

It says you requested. It doesn't say he has to or what happens if he does and you don't meet your end of the deal.

I don't think you'll win. I don't blame you for trying, and because the agreement is worded so loosly, who knows how a judge would rule on it? You've got to know, that if you sue, you can't stay.

In ordinary circumstances, small claims court does not allow lawyers. Yes, they can still ask the judge to award legal fees if you were to lose... But, he'd only do that if he thought your suit was frivolous, and I don't think it is, at all.

excon

Well thank you for your help,and by the way if you didn't drink the kool-aid. Who did??

Generally a lease/purchase includes a balloon payment. The buyer is given time to obtain their own financing. If the buyer can't makethe balloon, the contract is voided, all down payments are forfeited and the monthly payments are considered as rent.

I wouldn't bother wasting my tme trying to recover.

The issue is that with a lease, normally it is just renting the house if you don't follow though with the purchase,

The problem I see is that there is no equity that is given or gained during a lease.

The lease merely ends and you lose all moneys paid.

I doubt you will win in court, but you can always sue if you want to try.

enadnotlaw,
Contract doesn't states clearly about those 1800$ you are sorry about, and therefore you live in the apartment
I don't believe you can win in court (and it won't be for free)

Check out the local law
In Portugal, for instance, if purchase is not made due to fault of buyer, he looses the entire deposit, if due to fault of seller, seller has to return a double amount back

If you don't want to loose a house maybe there is a point to talk to owner and find some kind of compromise, like postpone the contract, etc. what was a reason you couldn't obtain financing? Was it dropped market price or something else?