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FLORIDA33 · Aug 8, 2008, 04:15 PM

Our buyer got denied financing of their FHA and conventional loan. They have not given us written notice in the 30 day time frame set by the contract. They want us to extend our contract t give them more time. Do we have a case to keep deposits ? If we sign the addendum. do you suggest we ask for at least half the deposit as if they do not get approval ?
Thank you

LisaB4657 · Aug 8, 2008, 04:45 PM

Forget it. A judge is not going to grant you a judgment giving you the deposit based on that. If the contract had not been conditioned on the buyer getting financing then you might have a case, but since your buyers had a contingency, and since they asked for an extension, you would lose if you tried to keep their deposit. The only way you would win is if you could prove to the judge's satisfaction that the buyers didn't try to get the mortgage or provided false information to the lender.

You can try to ask for the right to retain half of the deposit if you extend it and they still can't get a mortgage but I wouldn't count on that.

rockinmommy · Aug 13, 2008, 07:51 AM

Are you using a realtor?

One other idea if you do an extension is to change part of the "deposit" to an option fee. They are basically buying a period to close the sale. If they close it goes towards the purchase, if not it's a fee they pay you for the time that the house is tied up in contract.