| Seller's right to earnest money not assured and 5 truths about mortgage shopping |
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DEAR BENNY: Our buyer defaulted on his real estate contract and has decided not to buy our house. He had put up a $20,000 earnest money deposit, which we want. However, our real estate broker is refusing to release those funds. What can we do? --DylanDEAR DYLAN: Let me clarify an issue that is often misunderstood. When a buyer gives money to a title attorney, escrow company or real estate broker as the good-faith earnest money deposit pursuant to a real estate contract, this money is held in escrow. And even if the buyer is clearly in default -- which is not always the case -- the escrow agent cannot unilaterally release the funds to the seller. For that matter, even if the buyer is not in default, unless the contract authorizes an immediate release of the escrow funds, the escrow agent cannot give the money back to the buyer. [Read the full article] Home prices fell from September to October in 19 of 20 markets tracked by the S&P/Case-Shiller 20-City Composite Home Price Index, with prices in Atlanta and Las Vegas hitting new lows and Midwest markets including Detroit, Minneapolis and Chicago also showing weakness.Cumulatively, the 20-City Composite was down 1.2 percent from September to October and 3.4 percent from a year ago. The index was up 1.9 percent from a post-crisis low registered in March 2011.All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News.Use of this content without permission is a violation of federal copyright law. [Read the full article] It's not unusual for an entrepreneur to start out with an idea, and then to pivot when he or she realizes there's a better direction to head in. It's not easy to do, but sometimes changing course is the best way for a young company to keep moving forward. It may even lead to an entirely new business.Just ask New York City-based entrepreneur Tina Fine, who decided to start not one but two startups in an effort to connect potential homebuyers and sellers.Fine launched her first venture, homingCloud, in September 2010 as a kind of matchmaking service for do-it-yourself buyers and sellers -- as well as renters and subletters -- to meet without involving a real estate broker. Aimed at those looking to avoid the costs of real estate commissions, homingCloud gives consumers an alternative to a standard For Sale By Owner (FSBO) site by allowing them to create profiles and send each other messages that describe what they're looking for, much like an online dating site might. [Read the full article] 
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