HELP - earnest money not deposited right - Posted by Joe

Posted by JHyre in Ohio on August 01, 2003 at 20:25:22:

I do not know the law of your state, nor what theory the seller would claim to back a lawsuit. With that said, I don’t think that you have much to worry about. The contract had a financing contingency and I don’t see any indication of fraud or the like on your part (granted, I haven’t any details). He might have a shot at the $500, but even that’s darned slim. I wouldn’t lose any sleep over this. Let the seller scream.

John Hyre

HELP - earnest money not deposited right - Posted by Joe

Posted by Joe on July 31, 2003 at 16:33:41:

My contract with the seller ran out June 26. I could not get financing in time. I was still trying to get financing until today, when I was informed by my lender that I did not get it. In the contract it specified $500 earnest money with financing contingency. We did not extend the contract.

This is a very long story that I won’t go into, but I agreed to give the seller $500 for his expenses of taking the house off the market. My huge mistake is that the $500 deposit was never deposited with the title company. When the contract ran out, I did not think I needed to give the money to the title company.

Now because financing has dragged on for more two months, and because of other multiple screw ups on the part of my lender (including him claiming to get a phone call from my seller cancelling the deal a week ago), my seller is screaming law suit. He is convinced I never intended to buy his house, that I’m in cohoots(sp?) with the mortgage lender and whole bunch of stuff.

My question is, if he was to sue me, considering that that I’m not obligated by this contract any more and I gave him $500 back for his troubles, what can happen due to the fact that I did not deposit the earnest money with the title co.?
I know I screwed up, so I don’t need to hear preaching. I just want to know what could he win?

Please help! I’m paniking. In fact I’m thinking this RE stuff is not for me. I can’t handle this stress.