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where does earnest money go if buyer backs out

Earnest Money Deposit: How Home Sellers Can Keep It | realtor.com – . about an earnest money deposit, and how to keep the funds should a sale go south.. "One way sellers can protect themselves from buyers pulling out of a contract. Funding: A buyer gets his earnest money deposit back if his. If the buyer fails to do so, the seller may be able to keep the earnest money.

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Earnest Money: Where Does It Go? – Arizona Mortgage Team – Earnest Money – an earnest payment (sometimes called earnest money or simply earnest, or alternatively a good-faith deposit) is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious (earnest) about wanting to complete the purchase.

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Everything You Need to Know About Earnest Money Deposits – Where does an earnest money deposit go and why is it important? Both earnest money deposits and down payments are critical parts of the home buying process, If the buyer backs out due to cold feet, think of the additional costs that the seller now bears, which could be more than the cost of.

 · The Federal housing administration imposes the FHA Amendatory Clause to sales contracts in which it backs the loan. It provides for the buyer to back out of the sale if.

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