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05-15-2009, 10:02 PM
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Junior Member
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Join Date: May 2009
Reputation: 10
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Mercedes homes earnest money return?
Does anyone have any information on Mercedes homes and/or knowledge of their bankruptcy standings. We were going through the process of building a contingency home with them (contingent upon us selling our current home), after they filed for chapter 11 protection we decided when our 90 day contingency was up we were going to cancel our contract. Mercedes informed us that not selling our current home by our 90 day contract deadline would be the only way for us to see a return on our earnest money. 90 days came and went we filled out the cancellation paperwork that also states our money will be returned to us within 30 days. 30 days has come and gone and we are now being told that our money is at the mercy of the courts. Anyone know anything about this process that could shed some light? Any chance we will see our money returned? Is Mercedes still a viable healthy company operating strongly and honoring their written agreements?
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05-15-2009, 10:56 PM
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Senior Member
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Join Date: Sep 2007
Location: Great State of Texas
11,204 posts, read 4,198,449 times
Reputation: 2268
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Sounds like you should talk to a lawyer.
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05-16-2009, 12:53 AM
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Senior Member
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Join Date: May 2008
Location: Houston, Texas
106 posts, read 65,138 times
Reputation: 21
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you're not the first person I've heard say this in the past two weeks. Apparently, I've heard that all the earnest monies are tied up in bankruptcy court. Talk to a lawyer.
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05-16-2009, 10:13 AM
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Real Estate Agent- REALTOR®
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Join Date: Sep 2008
Location: Austin and Dallas
844 posts, read 550,037 times
Reputation: 203
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The sad part is that the earnest money should not be comingled with the builder's money whatsoever so this "shouldn't" happen. Earnest money should always be held in a third party's account like a title company. I had buyers in November have their earnest money with a builder who was about to file, and we made sure the money was at a title company. It took 8 weeks, but they got their earnest money back because of my numerous calls, but also because that money has to be separate from their everyday business.
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05-16-2009, 10:58 AM
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Senior Member
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Join Date: Feb 2008
Location: Austin, near 4 Points
490 posts, read 299,862 times
Reputation: 116
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Quote:
Originally Posted by FalconheadWest
The sad part is that the earnest money should not be comingled with the builder's money whatsoever so this "shouldn't" happen. Earnest money should always be held in a third party's account like a title company. I had buyers in November have their earnest money with a builder who was about to file, and we made sure the money was at a title company. It took 8 weeks, but they got their earnest money back because of my numerous calls, but also because that money has to be separate from their everyday business.
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Yeah....but who owns the title company that Mercedes uses? |
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08-22-2009, 08:32 AM
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Junior Member
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Join Date: Jul 2008
7 posts, read 2,565 times
Reputation: 10
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mercedes has reemerge from bankrupcy, i think it will be effective sept 2009. i live in one of their homes and yes,the title company mercedes uses is their own
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