Is it possible to recover deposit on new home?

[Alex_angel]

meadandale,
Thats the question. It seems they can get finiancing since the lender really doesn’t care. The problem is that they cannot make the payment. What lender is that reckless to still sign over a contract if the borrower bluntly admits that the new interest rate hike has put them in a position to not make payments. If anything the lender would then tell the builder that this person is not a good candidate and the builder would give back the deposit and sort of tell the buyer to f*ck off and don’t come back. I just don’t see this happeneing. I see the lender getting all tricky with loans to get this person in and then have them foreclose in a couple of months. I also see the builder being pricks about giving that deposit back.

[Alex_angel]

meadandale,
Thats the question. It seems they can get finiancing since the lender really doesn’t care. The problem is that they cannot make the payment. What lender is that reckless to still sign over a contract if the borrower bluntly admits that the new interest rate hike has put them in a position to not make payments. If anything the lender would then tell the builder that this person is not a good candidate and the builder would give back the deposit and sort of tell the buyer to f*ck off and don’t come back. I just don’t see this happeneing. I see the lender getting all tricky with loans to get this person in and then have them foreclose in a couple of months. I also see the builder being pricks about giving that deposit back.

[Coronita]

Most of the people I knew just sucked it up and lost the deposit. Myself, I had a deposit on a preconstruction out of state. I ended up changing my mind. Fortunately, the deposit was only like $500. I really have no one to blame, so I gladly forfeited the deposit.

Getting an attorney to fight over 20k is probably not worth the hassle/cost imho. To really win, you’ll probably need a good attorney. Good attorneys don’t come cheap.

You might want to get your in-laws to talk to pardee to see if they can make an exception. Provided they can quickly find another buyer, it might not be that bad. When I last spoke to Pardee, they claimed Carriage Run was sold out and there was a waiting list.

[Coronita]

Most of the people I knew just sucked it up and lost the deposit. Myself, I had a deposit on a preconstruction out of state. I ended up changing my mind. Fortunately, the deposit was only like $500. I really have no one to blame, so I gladly forfeited the deposit.

Getting an attorney to fight over 20k is probably not worth the hassle/cost imho. To really win, you’ll probably need a good attorney. Good attorneys don’t come cheap.

You might want to get your in-laws to talk to pardee to see if they can make an exception. Provided they can quickly find another buyer, it might not be that bad. When I last spoke to Pardee, they claimed Carriage Run was sold out and there was a waiting list.

[Coronita]

Or… tell them to find another lender that won’t qualify them 🙂
Seriously.

[Coronita]

Or… tell them to find another lender that won’t qualify them 🙂
Seriously.

[Alex_angel]

Carriage run has been saying they are sold out since the first release yet they are listing homes on the MLS. The sales people there are some of the snottiest uptight XXXXXs out there. They lie right in your face to get a sale. Not ethical at all. But again I am threadjacking.

Tuba, Some good points on fighting for the deposit back. I agree that I think the builder will try their hardest to keep it but part of me believes they would rather not have another potential forclosure on their hands.

[Alex_angel]

Carriage run has been saying they are sold out since the first release yet they are listing homes on the MLS. The sales people there are some of the snottiest uptight XXXXXs out there. They lie right in your face to get a sale. Not ethical at all. But again I am threadjacking.

Tuba, Some good points on fighting for the deposit back. I agree that I think the builder will try their hardest to keep it but part of me believes they would rather not have another potential forclosure on their hands.

[SD Realtor]

Alex as we have commented in many posts like this, it is hard but not impossible to get the deposit back. A 20k deposit is worth spending more money with an attorney to attempt to recoup. Your premise is correct that as long as they meet the numbers for prequalificatin, then they will have a difficult time proving hardship. Even not getting qualified from another lender doesn’t help because it is the preferred lender that the builder is working with. Everyone should recall that even if you purchase a home from a builder and DO NOT use the preferred lender, the builder will still enforce that you need to be qualified by the preferred lender.

The bottom line is the post in this thread that talked about being the squeaky wheel. You need to get around the sales people and get to management. You need to start getting things done in writing and producing documentation so that if necessary, you can build a case for litigation. The purchase contracts used by the builders are iron clad BUT they still do not like to go to court. Now you may need to spend another 1k-2k to attempt to get your money back (this is an estimate for using a RE attorney to take some rudimentary steps) but it may be well worth it in this case. Usually people who take charge and do this get the attention from management.

Be proactive.

SD Realtor

[SD Realtor]

Alex as we have commented in many posts like this, it is hard but not impossible to get the deposit back. A 20k deposit is worth spending more money with an attorney to attempt to recoup. Your premise is correct that as long as they meet the numbers for prequalificatin, then they will have a difficult time proving hardship. Even not getting qualified from another lender doesn’t help because it is the preferred lender that the builder is working with. Everyone should recall that even if you purchase a home from a builder and DO NOT use the preferred lender, the builder will still enforce that you need to be qualified by the preferred lender.

The bottom line is the post in this thread that talked about being the squeaky wheel. You need to get around the sales people and get to management. You need to start getting things done in writing and producing documentation so that if necessary, you can build a case for litigation. The purchase contracts used by the builders are iron clad BUT they still do not like to go to court. Now you may need to spend another 1k-2k to attempt to get your money back (this is an estimate for using a RE attorney to take some rudimentary steps) but it may be well worth it in this case. Usually people who take charge and do this get the attention from management.

Be proactive.

SD Realtor

[PerryChase]

Alex_angel, were you one of the people who said that “if you buy for the long-term, you’ll be OK”?

[PerryChase]

Alex_angel, were you one of the people who said that “if you buy for the long-term, you’ll be OK”?

[Alex_angel]

I agree perry but as long as you can afford the payment. In my bro-in-law this .5% rate jump is going to push him into a bad situation. It is funny how a couple hundred more per month can kill your budget.

[Alex_angel]

I agree perry but as long as you can afford the payment. In my bro-in-law this .5% rate jump is going to push him into a bad situation. It is funny how a couple hundred more per month can kill your budget.

[PerryChase]

Alex_angel, if a couple hundred dollars a month is what your bro-in-law needs to afford the house, long-term, then I’m sure that the builder can accommodate with some kind of incentive such as paying the HOA for a number of years or giving him some cash back at the close of escrow.

In addition, he could do 100% financing and have the builder return the deposit to him at the close of escrow. That should tide him over the long-term. In the long-term, he’ll be OK because his career prospect will improve over the long-term and he’ll make more money in a couple of years. Plus his family can enjoy the house over the long term. His children will benefit from the good school district and that will also pay-off over the long-term. In the long-term houses can only appreciate.

[Author]

Posts