Can the builder keep earnest money and deposits if loan was denied?

Can the builder keep earnest money and deposits if loan was denied?Can the builder keep earnest money and deposits if loan was denied?
Edwardkig asked 4 years ago

On March 2015 we decided to buy a brand new house from Richmond homes in Utah. They recommend us a loan officer base in las Vegas NV. We provided all the docs to get pre approve for the cost of the house ( $ 380,000) so we got a green light. We paid $ 6,500 as earnest money to Richmond Homes, then $ 5,000 to have the basement finished, plus $ 3000 at the home gallery as we got green light we were excited and the loan officer just told us to pay all our debts literally all. . In September 2015 we got an email our loan was canceled so we called our loan officer to see what happened. His answer was I thought they called you to notify you guys we changed companies , what a surprise,  right ??? Well no body told us , so we had to start all the process with him at the new mortgage company. The closing date was December 28th 2015 but the week before again not a word so we showed up at final walk to make sure the house was ready , so it was . We went to the loan office supposedly to sign and they told us the closing date was moved, because they were still needing some paperwork and that we needed to pay all a taxes as we are bussines owners,  usually we have agreement with the IRS to pay through the year but not ti make this so long , they told us they can’t approve the loan until we pay up in front the taxes, so basically,  no loan , no house , and we lost $ 14,500.00 . The house was evaluated @ $ 431,000. and Richmond sold it for $ 440,000… 

Register New Account
Reset Password