All Forum Posts by: Gargi D.

Wayne, the property is in DC and so is the agent and contract. I don't know all the details as I am actually helping out someone.

The listing agent is stating that they are not signing the release of EMD due to this clause:

Buyer will be in Default even if the Financing Contingency has not been removed if Settlement does not occur on Settlement Date as a result of any of the following actions by Buyer: (g) Does or fails to do any act following the Date of Ratification that prevents Buyer from completing Settlement."

So failing to pay the credit card dues is what caused the denial of the financing and thus the problem.

Property is in DC.

The listing agent is stating that they are not signing the release of EMD due to this clause:

Buyer will be in Default even if the Financing Contingency has not been removed if Settlement does not occur on Settlement Date as a result of any of the following actions by Buyer: (g) Does or fails to do any act following the Date of Ratification that prevents Buyer from completing Settlement."

So failing to pay the credit card dues is what caused the denial of the financing and thus the problem.

The Credit card payment was overlooked after the contract. Thus, the financing was denied due to bad credit. Since it happened after the ratification seller and agent states that based on the clause they want the release of the entire monies. Yes there was a financing contingency but then the below clause seems to override that clause.

"The FHA addendum states (4) Buyer will be in Default even if the Financing Contingency has not been removed if Settlement does not occur on Settlement Date as a result of any of the following actions by Buyer: (g) Does or fails to do any act following the Date of Ratification that prevents Buyer from completing Settlement."

It does weigh heavily against the buyer it seems. agent is with the seller. Not sure it is a standard contract. Maybe an FHA clause?

Yes. Financing was denied as I defaulted. Do I forfeit my deposit based on the clause?

I was to purchase a condo in Washington DC this month. I had a pre-occupancy contract which expired the day before the FHA certification and financing. The contract ended as it was to be the settlement. The settlement was postponded to Middle of Oct 2013. Seller/agent did inform me of the right to retract my purchase contract. Well two days later I was informed that the financing was not granted as I have defaulted on credit card after signing the contract for purchase. Now the seller is saying they want all the Deposit because of this clause:

paragraph of the FHA Financing Addendum I :

"The FHA addendum states (4) Buyer will be in Default even if the Financing Contingency has not been removed if Settlement does not occur on Settlement Date as a result of any of the following actions by Buyer: (g) Does or fails to do any act following the Date of Ratification that prevents Buyer from completing Settlement."

My act was totally a slip. What does this mean? I will actually have to give up my Deposit even if this was totally unintentional?