EMD refund

[Wendem Shewa]

Hello All,

I am in a situation where I am in escrow and the loan was denied by the lending company. I made a deposit of 15.5K. I haven't signed to remove any of my contingencies on the contract such as, appraisal, inspection, and loan contingencies. The contract specifically says that the transaction is contingent upon buyer's qualification for the loan. Regarding removal of contingency, it says that "Within 21 days after acceptance, buyer shall, IN WRITING, remove the loan contingency or cancel this agreement. 

Now, the problem is my loan is denied and the 21 day period has passed. I submitted a cancellation of contract form today. Is the seller entitled to any amount of my deposit even if I haven't removed the loan contingency?

I am in a situation where I have to explain a contract written by my agent to my agent, and all ideas, help, and expertise regarding this situation is appreciated.