Mortgage aplication co-borrower

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Mortgage aplication co-borrower

Applied for a mortgage, lender said we
need a co-borrower bc of credit issues.
Lender got info from co-borrower. Co-
borrower changed mind, backed out.
Lender said they would send denial
based on our credit but in error denial
letter says applicant withdrew. We
lost deposit. However co-borrower
necer techically signed application.
Shouldnt we legally be entitled to get
our deposit back?

Asked on February 21, 2017 under Real Estate Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You are only entitled to get your deposit back if your contract of sale specifically stated that under this circumstance, you would receive your  deposit. Otherwise, it is not the seller's concern or issue why you were denied financing--all that matters is that you could not go through with the sale. If you can't go through with the sale  for any reason not the seller's fault, the seller can keep the deposit.


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