Does a lender have the right to keep good faith deposit regarding a refinace, if you back out because they are taking too long?

Asked on September 11, 2012 under Real Estate Law, Illinois


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whether one loses his or her good faith deposit with respect to a refinance depends upon what the refinance agreement state son the subject and the reasons why the borrower decides to not go through with the contract.

Typically, a borrower cannot lose his or her good faith deposit on a refinace due to the lender's delay. I suggest that you carefully read your paperwork on the subject. Most likely the answer to your question will be there.

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