[Sandy0716]

Can anyone provide an interpretation regarding this HUD Policy? I am trying to get my 'earnest money' back from escrow because the bank/builder have not finished my building within the timeframe required in the contract. Escrow will not release because the bank won't sign to release the money to me. They have had my 'earnest money' for four years. Thank you in advance for your reply! Sandy.

U.S. Department of Housing and Urban Development

Office of Housing

Special Attention of: Notice H 92-10 (HUD)

Regional Administrators Issued: January 28, 1992

All Regional Directors of Expires: January 31, 1992

Housing

All Field Office Managers Cross References: Handbook

4310.5 REV-1 All Chief Property Officers

Subject: Failure to Abide by HUD's Earnest Money Policy


To participate in HUD's sales program, real estate brokers must sign

The Agreement to Abide in which they certify that they will comply with

HUD's instructions on the disposition of earnest money deposits. The

Purpose of this Notice is to provide guidance to Field Offices for

Implementing action(s) when the selling broker fails to comply with HUD's

Instructions on a sale which fails to close. Therefore, Field Offices are

Expected to implement the following procedures upon cancellation of a sale.


1. If the broker on a sale which fails to close is holding the earnest money deposit, in either an escrow or client's trust account, written instructions must be provided to that broker as to the disposition of such funds. If the broker fails to comply with those written instructions, within 15 calendar days of the date of the initial notification, forward a second notice to the broker, demanding the prompt disposition of the earnest money deposit and advising that

Failure to comply within 10 calendar days of the date of the second

Notice may result in a Limited Denial of Participation (LDP) action

For a period of one year.


2. If the broker has not complied within 10 calendar days of the date of the second notice.


a. Notify the State Real Estate Commission (or proper regulatory

Body) as to the broker's failure to comply with his/her

Certification, and


b. Follow the procedure set forth in 24 CFR, Part 24, for issuing a

LDP against the broker, and


c. Ensure that offers to purchase are not accepted from that broker.


The above procedures will be incorporated in an upcoming change to

Chapter 6 of Handbook 4310.5. If you have any questions, please direct

Them to Headquarters Single Family Property Disposition Division at FTS

458-1832.

[Xyzpdq0121]

Well what do you want to know... you have most of the information right there. First thing, what does your contract say about time line for completion of the property?! Second, who set up the fund you're your earnest money and where is that money now?! Third, was the loan FHA?! (If not, HUD rules really do not mean crap) Fourth, have you followed the steps outline in that AO?