I'm in sort of a panic right now as I was told that my Down Payment/Deposit is in danger of default.
Here's the story, we purchased the house(contract of sale was in March) and everything was going smoothly.
We applied for the mortgage and did everything we were told.
We were given a commitment letter some time ago and now, we are still in FHA underwriting and we are about 45 days past closing (July 15) and the seller just gave us a Time is of the Essence letter with a threat that our money will be defaulted.
Our lawyer said he is angry, the seller is angry, the seller's lawyer and realtor are angry, and they are going to keep the down payment of $35,000 + sue for damages(taxes, etc.)
What can we do now? Is all hope lost?
I'm so worried and afraid.
Please help as soon as possible!