NEED HELP ADVISE - Re: Mutual Release

[Anonymous]

Been fighting with the deal that fell through on a manufactured home that was listed FHA was in a flood zone ended up being refused FHA due to elevation survey.  I've paid out over 2K for this deal that fell through on my mutual release I asked the sellers to pay the last due inspects that were to be due at closing, a water inspect and the septic inspect both which will benefit future prospective buyers as I've already paid out over 1K in inspections and appraisals.  They are refusing to do this and will not return my earnest money until I pay for them.  Not sure if I can take them to sc court to sue for return of my earnest money as well as recoup of my losses or what.  I am just so disgusted at this point.

[Anonymous]

you need to have a lawyer look at your contract and see what you can do.  We can not help with this type of legal situation without seeing the entire contract and the wording.

[Anonymous]

To put it in a nutshell inspections were to be paid by the seller as part of the 3% towards closing costs/prepaids, so their claiming as the deal fell through it no longer falls on them.  Deal fell through because property cannot be financed FHA due to flood zone issue which I had to pay for an elevation survey to try to qualify the property which it failed.  Property can only be financed FHA due to manufactured status although they have it listed as a modular/manufactured. 

Irregardless of contract septic inspect pump had not been done for seven yrs, I would think they'd at least pay for that as I've paid out of pocket for home inspection, termite inspection, elevation survey, FHA appraisal, plus my own costs involved with the lender.

Also listing agent relisted the property for sale FHA, even with it being a manufactured in a flood zone with failed elevation survey.  This is in addition to having the property relisted without the mutual release having been signed by both parties. 

[Anonymous]

If the deal falls through, there is no closing cost assistance.  So although they may have to pay the costs, it may give them reason to hold the deposit.  It all depends on the legal wording of your contract.  You need to have a lawyer look at it.  Differing state and local laws, along with the differences in one contract and another, make it impossible for anyone here to answer this.

[Anonymous]

Also, no you can not take them to court for losses.  The point of all those things you paid for was to determine if the house was eligible for an FHA loan and to determine value.  You found out the answer was no.  End of story.  It sucks, but it just is what it is.  You have to just forget it.  The only possible claim is to get the earnest money back, and that depends upon the wording of the contract.  How much are the remaining inspections that they say you owe.  Honestly, by the time you pay a lawyer, you are probably better off to just have them take the inspections out of your deposit and return the balance. 

[DallasLoanGuy]

you ordered the inspections. you are responsible.