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  Wow! Appaled at advice our agent gave me!
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Wow! Appaled at advice our agent gave me! Sign In/Join 
posted
Ok, so we have a minor setback with our home purchase. It could probably have been avoided with better timing, but well.. what are you going to do.
Long story short: Our Landlords approached us with a lease renewal. (Our lease said month to month after 1 year, so we were stupid in assuming this was the case) We told them we were house hunting and asked if they would work with us. They said no, 1 year or 30 days to leave. (Which my lawyer friend said was completely within their rights) Knowing we couldn't even close in 30 days (and we still haven't found a house yet! We had nobody we could stay with, so we signed. Having a roof over your head is #1 priority.)

So I had to tell our agent. He had called me while we were trying to hash out this issue with our LLs about a house he was listing he thought we would love. (Funny it was the first house he actually found for us, and he was listing it!) I told him I would let him know in a couple days, and that there was potentially an issue.
So I called him to tell him and this is what he told me to do: Well, I think you guys would really love this house. And we could push it through closing, in 6 weeks. You could stay and let them start the eviction process on you, but you'd be out in 2 weeks so it wouldn't even matter.

I was FLOORED. My husband was MAD! First of all, what if we didn't like this house? It was a little bit out of our area and gave me a 45 min drive to work which I didn't like. 2nd, what if the FHA inspector found something that needed fixed and that pushed back closing? Then what were we supposed to do?!
I will not be working with this agent again when we start looking in about 6 months or so!

Would any other agents out there say this to their clients?! I'm pretty sure an eviction goes against you, doesn't it? Like on your credit?

And he still has not gotten us our earnest money we put down on a house the FHA kicked, and that was over a month ago!!

This message has been edited. Last edited by: Alleria,
 
Posts: 28 | Registered: Jul 18, 2013Reply With QuoteReport This Post
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Did you write to the lawyer, title company/escrow officer or other escrow holder demanding the return of your deposit?
 
Posts: 482 | Registered: Aug 29, 2011Reply With QuoteReport This Post
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Well, what I had to do for him was to get a "turn down" letter from our lender and send it to him. He also had us sign a paper that he said he presented to the listing agent to give to the seller of the house to sign. This was all done within a week of the FHA declining the house.

We have been told for the last 3 weeks anytime we ask about the money, "the check was mailed. I'll look into that."
 
Posts: 28 | Registered: Jul 18, 2013Reply With QuoteReport This Post
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So they had both parties execute escrow cancellation instructions to document their file.

You can check (online) your state's deadline for returning escrow deposits. It's possibly 30 days with penalties and interest accruing thereafter.

It sounds like the escrow holder is managing the float and you'll probably receive it slightly before the deadline. That's only my guess, however, from the information you provided.

You might want to begin communicating in writing, starting with a friendly fax, retaining the transmission receipt. You can forward a certified letter and request a return receipt, if/when they miss the deadline.

WRT your other issues, I agree with you about a possible eviction. I'd take my time and find the right property. Interest rates remain relatively low, even though they've gone up slightly.

It's all IMHO - best of luck with everything!

This message has been edited. Last edited by: SurfNow,
 
Posts: 482 | Registered: Aug 29, 2011Reply With QuoteReport This Post
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Thank you!

I came home today and low and behold the check was FINALLY in the mail!! It kind of makes me feel like he was delaying getting this to us to keep us working with him.
The check was dated 8/16 which was Friday, the day I told him about the issue with our landlords.
Oh well. Live and learn.
We are going to use the next 6 months to add to our savings.
 
Posts: 28 | Registered: Jul 18, 2013Reply With QuoteReport This Post
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Sounds like a terrific strategy, Alleria!

BTW, if you're still around, your posts made it sound as if the refund check was actually cut by the realtor/broker. IME, the realtor transmits the initial deposit check to a title company or other escrow company. If the escrow's cancelled, the refund is transmitted by the escrow holder. Just curious -

Again, I'm happy the matter's resolved. So much easier than having to deal with the demand letter process.

Best of luck with your future home search!
 
Posts: 482 | Registered: Aug 29, 2011Reply With QuoteReport This Post
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Yes, the check was cut to us by the realtor/broker.
I'm not sure exactly what happened but, after we signed the release papers for the house the FHA kicked, we put an offer in on another house about a week and a half later. They used our deposit from the 1st house. Well the offer was never accepted on the 2nd house.
The check we got back, had the address of the 2nd house on it. So I have no idea. I'm just glad it's all squared away, LOL.
 
Posts: 28 | Registered: Jul 18, 2013Reply With QuoteReport This Post
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Don't know what state you're in but that's unusual to me. (I've been responsible for/completed transactions in multiple states.)

Typically, IME, any escrow refund check would be cut and forwarded to you by a title company, lawyer or other escrow holder. The funds wouldn't pass through an agent/broker's accounts.

In cashier's check form, the funds would be readily available, e.g. for your 2nd escrow/offer. Not sure I'd be comfortable with that procedure, going forward. Anyway, good luck!

Hope you end up with the home of your dreams!
 
Posts: 482 | Registered: Aug 29, 2011Reply With QuoteReport This Post
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