Property Value Reduced By Lender --
I recently went into contract to purchase 3 properties in NV. While purchasing the properties the appraisers had to "stretch" to get the appraisals. Well unfortunately the Lender agreed because during the appraisal review the lender dropped the Value from 105K--> 90K . (The appraiser did not want to substantiate his appraisal for 105K so the lender left it as is) The seller said he did not want to sell the property for 90K and that I should go through another lender. I have a pretty liberal lender who I have worked with before so I have no aspirations of doing. I decided to cancel the contract since the property didnt qualify for the loan. (Which is in the contract). Now the Seller which is an LLC does not want to give me my earnest money back. What recourse do I have ? should I take them to small claims ? Do I have a case ? there is a total of $3K in Earnest Money.
sounds like that's your cash...go get it. I find a simple letter from my attorney does the trick most of the time. don't waste time or money on court until you do some threatening first.
Definatly your money. Most contracts are pending financing anyway, which you could not get. Even if you broke the contract you're still usually entitled to your earnest money back.
The seller is convinced that I should go to another Lender, I was pretty sure that I didnt need to and they are just trying to give me run around.
Who's holding the earnest money? If it's the listing agency, they may be required (after a specified amount of time and notice to the parties) to interplead it -- to pay the money into court and let you and the seller fight it out.
The title company is currently holding the Earnest Money