Financing Contingency Loan Denial
Summary
If your contract includes a financing contingency and your loan was denied, you should be entitled to a refund of your earnest money. Provide written notice to the seller about the loan denial. If the seller refuses to return the earnest money, consult with a real estate attorney for further steps.Full Conversation
Hello, I have a financing contingency in my contract, but my loan was denied. However, the seller is not returning the earnest money. What should I do now?
Hello ****. Could you please specify your location so I can provide accurate legal information?
Nashville TN
Hello ****,
In Nashville, TN, if your contract has a financing contingency and your loan was denied, you should be entitled to get your earnest money back. However, you may need to:
*. Provide a written notice to the seller about the loan denial.
*. Consult with your real estate attorney to take further steps if the seller refuses to return the earnest money.