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Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.
Does constitute a valid denial of credit and allow the buyer to get their earnest money back?
Is this on a bank's letterhead or just some random Word letter that anyone could have typed up?
Ok, then you are well within your rights to demand something from the lender as a formal letter, on their letterhead, because that is what real lenders send out when denying someone..
So this smells a little sketchy to me..
As for being over the 30 days, no real estate contract ever closes on time and both parties have a legal duty of good faith to work with each other to get the deal done. So as long as it is relatively close to that 30 days, it will count if it got in front of a judge.
The only way you can set rock solid deadlines in a real estate contract is by using the statement "Time Is Of The Essence" in every clause because that creates a drop dead date. If they miss it by a minute, they are done.
But I would definitely refuse to release any earnest money unless they provided something more formal from their lender..
As an aside, I used to be a closing attorney for 4 different lenders...
Right, unless you used the clause I mentioned, that is a "soft 30 days" with the financing clause because as long as he is acting in good faith in trying to get financed, you have a duty of good faith to extend the deadline a reasonable amount so he can get an answer from the bank.
But again, I would definitely refuse to release any deposit unless he comes up with an actual rejection letter from the lender that was issued within that 30 days (or very close to it).
And I have been a licensed Realtor for over 13 years as well as a real estate attorney for over 16 so I have seen this type of thing come up from time to time.
You are very welcome. Happy to help any time.
And it sounds to me like he manufactured something because he knew the 30 days was up... So he probably won't be able to get something legitimate from his bank that is within the 30 days or slightly over...
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