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how do i get my escrow money back

Posted on: 03rd Jul, 2010 11:09 am
I am one of the many people out there who has been waiting for the House and Senate to pass the FHA tax credit extension. I have been living on friend's couches for a month and a half and four days ago I decided enough was enough. I put in an app to rent a condo figuring that the extension was just not going to happen and yesterday the bill passed. That's great news, but I am tired of being homeless and frankly waiting for the closing to happen is going to eat into more time that my son and I have no place to live. Is anyone else going through this? I just want to get setltled somewhere and get my money I put into Escrow back, if possible.
You would have to read through your purchase contract to determine if there are any contingencies remaining that would allow you to exit out of the purchase and get your escrow deposit back. Simply being "fed up" is not a valid reason to get your escrow deposit, typically the reasons you can exit and get the deposit back are:

1. Financing (if you do not get approved for the mortgage)
2. Appraisal (if the home does not appraise for the purchase price)
3. Inspection (if something revealed during the home inspection or your personal inspection isn't something you want to live with)

In most states there are deadlines for those contingencies, in California it's common the inspection contingency is removed within 7-10 days, and the appraisal & financing contingency at the 17 day mark.

Before you do anything you should consult your real estate agent on what the possible ramifications for you to exit out of the purchase contract.
Posted on: 03rd Jul, 2010 10:06 pm
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