Who’s Earnest Money Is It?

[Elina Solaita]

I was notified on Thursday 5/23 that the bank had requested my FHA Case ID# 3 days prior to the 3 year mark since my short sale. That in turn led to the bank determining that they were not able to finance a home loan for me. The closing date was 5/31.

I received the notice letter on 5/24 and on 5/24 I submitted my termination agreement with escrow disbursement instructions stating I would receive the full amount of the earnest money.

On 5/26, the home was back on the market and the seller apparently had provided my agent a term agreement with escrow disbursement instructions stating he should receive the full amount of the earnest money in full.

I know I am entitled to the full amount of the earnest money. $4,000. The title company has already sent out their interpleader letter and a resolution is required by 6/10 before its sent to mediation.

I have already sought legal counsel.

My options are to:

-Pay $345 an hour for an attorney to spend 2 hours writing a letter to the agents and principal broker.

-Pay for mediation

-Sue the seller/agent for all costs incurred for having to justify my right to my own earnest money that is clearly stated in the sales agreement.

The sales agreement has a failure to finance contingency that’s pretty straight forward. I’m not sure where their misinterpretation is.

Please, if you have any words of advice that will get me my money for no additional cost, that would be great. Thank you.