reedplayermkvi
New Member
My son put earnest money down on a house in Louisville. The move was a result of a job change, and he and his expecting wife were moving from Salt Lake to Louisville, about 6 weeks prior to her due date. They found the house they wanted and they were pre-qualified for a loan in the amount that would have allowed this deal to close, based on the asking price of the house, his income and assets, etc. Because they were moving across the country, with his wife 7 months pregnant, and to avoid moving twice, the seller agreed to allow them to pre-occupy the home before closing. Unfortunately, this was a house that had the kitchen in the basement. Apparently, mortgage companies will not loan on that floor plan, no matter what, so the house did not qualify for a loan. This was news to the realtor, who in this case was representing both the seller and the buyer. The realtor tried to keep the deal together by getting the seller to carry a contract, but the seller would have no part of it and demanded that they vacate. My son tried to get his earnest money back from the seller, but because the deal did not go through she is refusing to release the earnest money, and has hired an attorney. The question is whether my son should take her to small claims court to get the earnest money returned ($2000), or would he potentially be liable for even more damages, considering he would be unrepresented and up against an attorney on her end? The irony is that they offered to pay rent for the pre-occupation term and she refused (that's documented through the realtor) and during the short time they occupied the house they paid for a number of repairs identified in the inspection that the seller refused to cover. He just doesn't have enough to risk losing more, but he really needs that earnest money back. What are his chances?
