Greetings everyone

I first posted on this client who misrepresented to lender one her income for a property and submitted a bid and escrow without producing actual documents we had a good faith letter from lender one on information given. client went to lender two and found out she did not qualify for property from documents provided and client backed out of contract. sellers agent informed seller who decided to keep half of escrow which is 500.00 for time lost in taking property off the market.client feels this is wrong because she is blaming lender one for telling her or allowing her to believe she could get property
on information she provide.she stated she made 51k but actually made 41k. now she wants or is going to file a complaint for all of her money.
My question is can she do that when she was not quite forward and did not provide documents to lender one at request before during and after this mess. what would she have to stand on. this matter is playing itself out in the state of maryland

Respectfully
david
Beforehand I would like to say thank you to all

I don't think she can, she falsified her income...the loan would have been based on actual income, and sense there was reall no actual income $51,000.00, and it'd false info....she's pretty much being fradulent

"sellers agent informed seller who decided to keep half of escrow which is 500.00 for time lost in taking property off the market"

This is NOT how it works!!!You can't do something because you think it is fair.You go buy contract law and you do what is stated in the contract period unless it is a fraudulent or illegal activity.

What does the contract say about the earnest money provision and contingencies??

This is EXACTLY WHY WE NEVER LET THE SELLERS HOLD EARNEST MONEY,NEVER!!!

It is to easy for the sellers to illegally hold the money hostage and then you have to sue them to recover the money if you ever see it again.

The developers I work with I help assemble land properties for commercial projects.We always have us hold the earnest money.If the seller won't go for that we have our attorney third party hold the money and if the sellers don't like that we have a nuetral attorney hold it.It's always important to control the earnest money and have the contract conditions fully honered.

My developers have been burned in years past where the sellers held the earnest money and the deal fell through.The sellers were bitter and tried to keep the earnest money which was NOT the condition of the contract.So the developers spent countless hours suing and tracking down the sellers to finally get some of there money back.

Long story short always control the earnest money and never let the other party hold it.