Bad Credit Agency

Cancelled Mortgage and I am loosing my Deposit. Help..?

The attorney's, both mine & the Sellers tell me I will loose my deposit because I incurred credit card debt and that was the reason for the denial. I bought a home to rehab and used purchases applied to my credit card to pay for repairs and appliances, paint, carpeting, etc. Since I did this it adversely affected my credit score and prevented me from buying another home. My attorney said that this is a way people use credit to avoid buying a home, and because of this I cannot expect my deposit back. My purchases were used to fix up a home and sell it for a profit like thousands of other people do every day. Even though I did not know this would affect my credit I am still held responsible. Any advice would be sincerely appreciated. Thank You.

Public Comments

  1. This falls under contractual law. Whether or not you receive your deposit depends greatly on the contract (offer and acceptance). There are customarily 'escape clauses' written in Real Estate contracts, specifically regarding the ability to acquire financing. There is almost always a section defining the terms when the deposit (or earnest money) is returned or not. You may want to seek out additional legal advice (your attorney may actually not have a fiduciary responsibility to you). Good luck!
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