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Pulte Mortage denied our loan about 40 days before closing.We tried right away to get a loan with our bank but was also rejected. We had given Pulte 25% of the upgrades we added to the house plus the $500 to separate the lot. It was yesterday (one day before closing date) that we found out our bank rejected to finiance as well, and I advised pulte right away. Today, they emailed us a cancellation form to sign and return to them that states as follows:
Seller: Centex Homes, a Nevada General Partnership Lender: Pulte Mortgage Loan Type: Cash Address: Reason for Cancellation: Financing Rejected
The Buyer and Seller identified above agree to cancel the referenced Agreement. The obligations of Buyer and Sellerpursuant to the Agreement shall terminate upon the execution of this Cancellation Agreement by the Seller, except forSeller’s obligation to refund Deposits paid by Buyer, if applicable, and any other obligations that expressly survive atermination of the Agreement. Upon approval of this Cancellation Agreement by Seller Deposits may be refunded as follows
Deposits Paid $4,500.00
Less: ______________________________
Non-refundable Deposits to be retained by Seller $4,500.00
Other Amounts to be Retained ______________________________ Total Refund payable to Buyer (subject to approval) $0.00 If applicable, refund checks will be mailed three to four weeks from execution of this Cancellation Agreement.
They also sent a separate email confirming the deposits were non refundable.
Has anyone had a similar case that could give me some advice?
I have no clue as on how to fight this, and it its even possible and/or worth it?
That amount might not seem like alot to some ppl, but it was not easy for us to come up with that money plus the down payment they were requesting.
It pisses me off that they want to keep our money.
Any help is very much appreciated.
Your building contract will state very clearly what deposits are refundable and what deposits aren't. Most builder contracts I've seen state that earnest money is refundable, but 100% of the upgrade deposits are non-refundable. It should be spelled out very clearly in the contract as to what you are entitled to. A coworker went through this (different circumstance, his home didn't sell) and he was SOL with the deposits he placed outside of the earnest money.
Are there no options for you to get the mortgage? Were you pre-approved before the building started? New home builders here require a preliminary approval from their lenders before they'll even start a home. I'm surprised that you would get that far into it and be denied unless circumstances changed dramatically before the initial app and now.
There is a clause in your purchase agreement with the seller that explains the non-refundable portion of your deposit. The mortgage company isn't keeping your money, the seller is. If you want better advice, black out personal information from your purchase contract and post a pdf of it for some of us to review.
These national builders usually have the contract in their favor. However, if their affiliated lender pre-approved you and then rejected, I would raise that with them and try to push it up the chain some. I would also ask them why they were having you pay money for upgrades when they did not have an approval yet. Especially if you asked and they said not to worry.
I work primarily with builders, national and local. At the end of the day, buyer deposits usually find their way back to the buyer, as long as you did nothing to alter your financial position . Don't give it up and sign anything. Drag it out, consult with an attorney to assist with a settlement. Your funds were placed in escrow, an account that no one can touch without mutual agreement. Don't agree and don't make it easy.
So, I re-read this. You are saying that 40 days ago, Pulte Mortgage rejected you, but you continued on trying to get your bank to loan the money. Now, 39 days later, the day before closing, your bank finally came back with a rejection?
Had you already paid the deposit money prior to Pulte Mortgage's rejection?
Yeah, you might need to talk to a lawyer on this. did you have a buyer's agent? They can also put pressure on the builder as they can bring future business.
I'm going to take a guess here: the $4500 was not an earnest money deposit, but a deposit on the upgrades the OP selected. The actual deposit on the home was $500. Your contract will indicate if this $4500 is refundable. It sounds like it was not.
I'm going to take a guess here: the $4500 was not an earnest money deposit, but a deposit on the upgrades the OP selected. The actual deposit on the home was $500. Your contract will indicate if this $4500 is refundable. It sounds like it was not.
$4500 was not an earnest money deposit, this is steep!!!!
What were the upgrades? Agree need to see the contract?
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