I made an offer on a foreclosure home in Olathe last month. According to the contract I need to be approved for a mortgage within 3 weeks. Here is my problem. I conducted inspections and applied for a mortgage. The bank approved me for a mortgage, but not for this home. The banker says the home needs to much work and in order to get a mortgage loan through his bank I would need the seller to make the repairs. Since the bank will not make repairs, my bank issued a denial letter, which was submitted to the listing agent within the 3 week period but not sent to the bank who is handling the foreclosure within 3 weeks. Now the bank wants to keep my $2,500 earnest deposit. Can you help me?

Question: I made an offer on a foreclosure home in Olathe last month. According to the contract I need to be approved for a mortgage within 3 weeks. Here is my problem. I conducted inspections and applied for a mortgage. The bank approved me for a mortgage, but not for this home. The banker says the home needs to much work and in order to get a mortgage loan through his bank I would need the seller to make the repairs. Since the bank will not make repairs, my bank issued a denial letter, which was submitted to the listing agent within the 3 week period but not sent to the bank who is handling the foreclosure within 3 weeks. Now the bank wants to keep my $2,500 earnest deposit. Can you help me?
Henry L. from Olathe, Kansas


Answer: Sorry to hear about your problem Henry. If you still want the home, have you explored a FHA 302K mortgage loan? This mortgage loan will allow you to basically finance the repairs. If that will not work, I would consult an attorney for legal advice regarding getting back your earnest deposit. If you need a referral of a good real estate attorney, feel free to contact me.


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