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Ask Irwin Law Your Own Question
Irwin Law
Irwin Law, Lawyer
Category: Real Estate Law
Satisfied Customers: 6779
Experience:  Lawyer- Broker 30+years - foreclosure, short sale, liens, title attorney.
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The buyer lied on a lan application about not disclosing a

Customer Question

the buyer lied on a lan application about not disclosing a foreclosure thus tying up my house for 3 weeks i signed a contract agreeing to the extension on trying to get a loan but didn't she had a foreclosure until now. the extension is up at 5 pm today if she doesn't get a loan am i entitled to get any of the deposit in the state of california because she lied on the loan application?
JA: Since laws vary from place to place, what state is this in? And has any paperwork been filed?
Customer: california just typical contraction stuff but she is still under loan contingencies until 5 today she is trying to get a hard loan now
JA: Has anything been filed or reported?
Customer: apparently there loan officer told my realtor about it and they told me so they said i can be sued if i don't release the money because i wasn't supposed to know
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 21 days ago.
Category: Real Estate Law
Expert:  Irwin Law replied 21 days ago.

Good afternoon. Thanks for contacting JUST ANSWER. Until I read the last part of your information, my first question was going to be: How did you know about the loan application? Whoever disclosed that violated federal privacy laws. It can be argued that the loan application was not made in good faith, and the financing contingency is invalid. That might might permit you to keep the earnest money deposit. It might also cause you to be sued, so you have to weigh the value of the money versus the inconvenience and aggravation of continuing to deal with that buyer in court.

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