QUESTION
Will I be penalized for not purchasing a home if underwriter found second loan on house for 35k?
Asked on Jun 09th, 2017 on Real Estate - Michigan
More details to this question:
Underwriter found second loan on house for 35k seller claims she was unaware of. The house appraised for at least the sale price we agreed upon. She's going to try for a short sale. If the bank denies it, what happens to me? I can't go 35k higher and I already paid earnest money, home inspection, appraisal and application fees. Am I out all that money and have to pay a penalty?
1 ANSWER
Administrative Law Attorney serving Ann Arbor, MI
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David J. Hutchinson
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If I understand the facts correctly, you should be able to get your earnest money back, since the seller cannot give you good title for the amount you agreed to pay. Good Luck.
Answered on Jun 13th, 2017 at 8:03 AM