short sale deposit not returning from the seller

[beacon]

Hi ALL,
I hope someone can give me some input regarding a recent short sale does not go well.
I signed a contract and agree to deposit 10% to the seller's lawyer escrow account. The seller submitted to the short sale bank for approval but for some reason the seller's bank rejected the offer. Now the seller is blaming me not submitting my loan application to her bank for approval. According to my contract there is no obligation or require from my side to submit any documentations to assist the seller's bank approval. The only way I cannot get my deposit is when the bank approved the deal and I cannot close it. Now the seller is file a lawsuit regarding the 10% down payment. She even offer me to give her 15k in order to drop the lawsuit. What is the chance she will win the case since I am complying 100% to my contract here?

Thanks in advance,

Beacon

[Evan Bedard]

I signed a contract and agree to deposit 10% to the seller's lawyer escrow account. The seller submitted to the short sale bank for approval but for some reason the seller's bank rejected the offer. Now the seller is blaming me not submitting my loan application to her bank for approval. According to my contract there is no obligation or require from my side to submit any documentations to assist the seller's bank approval. The only way I cannot get my deposit is when the bank approved the deal and I cannot close it. Now the seller is file a lawsuit regarding the 10% down payment. She even offer me to give her 15k in order to drop the lawsuit. What is the chance she will win the case since I am complying 100% to my contract here?

This is completely ridiculous, I do not see how she is going to win a suit against you if the bank did not approve the short sale. You as the buyer have absolutely no control as to whether or not the sale is going to be approved by the lender and it is VERY common for a short sale to be denied. This sounds like a scam from the get go and I would have never signed any contract agreeing to pay the lawyer's escrow account 10%.. Since she claims to have already filed a suit you may want to consult with a local real estate attorney right away. You can find legitimate lawyers in your area using the link below.

National Association of Consumer Advocates | Consumer Protection Advocates and Attorneys - Help for Consumers

[beacon]

Thanks for the advise and this is what I thought.

[Evan Bedard]

No problem, I do not believe she has any leverage to win a dime from you, but I'm interested in hearing what an attorney has to say about this..

[beacon]

No problem, I do not believe she has any leverage to win a dime from you, but I'm interested in hearing what an attorney has to say about this..

I consulted the lawyer. The lawyer said we will win the case by 100%. He also said he can put a lien on the property so she cannot sell it. We also can sue the seller's lawyer by not complying the contract as well.

[Evan Bedard]

Even if the lawyer does not pursue any actions the chances of her selling the home through a short sale are extremely unlikely. It is up to the banks whether or not they are going to approve the sale no matter how many times she submits an offer..