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Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 100009
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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I was in contract property in pa and I wasent able to get a

Customer Question

I was in contract for a property in pa and I wasent able to get a mortgage cause I was not back to work yet after having a heart attack now the seller will not give me my deposit back and I had a mortgage contingency in contract. What's the next step?
Submitted: 10 months ago.
Category: Real Estate Law
Expert:  Ely replied 10 months ago.

Hello and welcome to JustAnswer. Please note: This is general information only for educational purposes only, and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

I am sorry to hear about the situation. Can you please tell me the amount of money they are withholding, i.e. is it $2,000, $20,000, etc?

This is not an answer, but an Information Request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.

Customer: replied 10 months ago.
It's 10k the seller won't sign the release
Expert:  Ely replied 10 months ago.

Thank you. If the seller is not releasing the money, and the contract has a clause that if the buyer does their due diligence to get a mortgage and do not, then the would-be buyer should get the money back. However, the seller will often attempt to keep it for some reason, often claiming that the would-be buyer did not do their due diligence to attempt to get the mortgage.

If so, the would-be buyer can file a lawsuit against the seller in the magisterial district court. See HERE. The would-be buyer would have to show that they did everything reasonably possible (i.e. due diligence) to get the mortgage approved, but did not, and then can get their deposit back.

A letter threatening to go to court will often do the trick without needing to go to court. Let me know if you need a sample letter, although it is better that it comes from an attorney's office representing you.

I hope this helps and clarifies. Gentle Reminder: Use the SEND or REPLY button to keep chatting, or please rate when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of the top three faces/stars and then SUBMIT, as this is how I get credit for my time with you. Rating my answer the bottom two faces/stars or failing to submit the rating does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith.

Expert:  Ely replied 10 months ago.
Hello again. I am checking in because you have not rated positively. To me this means you may have another question. Please let me know – I am simply touching base. Thanks!

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