$7500 Deposit...Will The Villages REALLY Keep It If...

[AngieT2]

Need help from those much more experienced than I on these matters...

We currently have a $7500 to hold a Premier Lot. Just found out that due to my husband not moving out there (he is a San Diego Police Officer and has about 6 more months to work before he can retire), that we may not be able to obtain financing (even as a 2nd home and with PERFECT credit scores, good assets, etc.).

Of course, our sales rep is telling us that the $7500 will be lost if we do not move it to another lot or standing inventory home (cannot use it for a resale).

My question to those who might know, or who have had similar experiences, WILL THE VILLAGES REALLY KEEP MY MONEY if I cannot get financing (yes... I am 100% aware that this is what the contract says...that's why I am asking what 'really' happens.

In my mind, no home has been started, so the developer really isn't damaged. The lot is the least expensive Premier Home lot, so it should be resold in no time at all. Where are the damages?

Thanks for any and all feedback. We are more than devastated over this news!

The positive side (and the ONLY positive side) is that we will probably end up paying cash for a smaller Designer Home and just work hard to build up the retirement nest egg, once again.

Thanks so much .... We are so excited to join you all shortly!

Angie

[downeaster]

Have you discussed this with your sales rep? He/she should be able to answer your question. If their answer does not satisfy you then take it to the next level.

I hope it works out in your favor.

[Roaddog53]

I agree. Talk more with your sales rep. but in the long run, the developer has the final say IF they were to help you out based on extenuating circumstances you may have run into along the way. Bottom line though is a contract is a contract. You signed it based on what is in it. In today's world that does not seem to mean much. However, it never hurts to ask and go to the person that can MAKE a decision.
Read lots of these posts about covenants and other documents and you will see many don't like what they signed or believe it applies to them.
Good luck to you and hope you are able to work things out.

[redwitch]

The developer has been known to keep the deposit in the past. From what I've heard, they don't give the deposit back regardless of circumstances. Hope things have changed and you can get yours back.

[rubicon]

Hmmmmmmmmmmmmmmm

[l2ridehd]

Angie, sent you an e-mail with some recommendations on how to make this work.

[graciegirl]

I have heard on this forum that the developers have held a deposit for as long as five years until things changed and people could build. They won't hold your LOT, but you can build later if you want on another lot.



I hope this is settled in such a way as not to hurt you.

The fact that you can't get financing from Citizens has no bearing on this. There are other lenders. It is your responsibilty to get financing. They will shift your deposit to another lot.

But maybe I don't understand.

[AngieT2]

Yes... I have had a very, very long conversation w/ my sales rep and told her that our situation has taken a tough turn. Also told her that the service (or lack thereof!) from Citizen's First and a specific lender there, (who never returns phone calls or emails!) has been tragic and not in keeping with the 'customer first' attitude that seems to be the motto of TV. (sorry for the venting, but if he had done his job properly, I would NOT be in this position!).

Thanks for the replies and I hope that someone has something that will help us out. $7500 is a lot to lose when the builder will NOT be damaged...not at all. The lot was off the market for about 6 weeks, and is the ONLY interior lot left in this particular section (227/Pinellas).

Thanks again!!!
Angie

[graciegirl]

https://www.talkofthevillages.com/forums/villages-florida-new-members-forum-115/deposit-land-what-if-35467/

and this one too.

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/refund-44149/

and this one?

https://www.talkofthevillages.com/forums/ask-expert-about-villages-florida-real-estate-300/va-lender-70311/

[gomoho]

You would think if TV is selling like hotcakes they wouldn't penalize you by keeping the deposit if they can resell the lot iot in a reaonable amount of time. I would think that would speak volumes as far as their moral compass. I know it's a business, but when it is as successful as this I think sometimes a happy customer is worth more than the lousy $7500. Don't you???

[Barefoot]

Yes... I have had a very, very long conversation w/ my sales rep and told her that our situation has taken a tough turn. Also told her that the service (or lack thereof!) from Citizen's First and a specific lender there, (who never returns phone calls or emails!) has been tragic and not in keeping with the 'customer first' attitude that seems to be the motto of TV. (sorry for the venting, but if he had done his job properly, I would NOT be in this position!).
Angie

I assume your offer/contract was conditional on obtaining financing? If so, TV should return your deposit.

[JB in TV]

I assume your offer/contract was conditional on obtaining financing? If so, TV should return your deposit.


As far as I know, NONE of TVs new home contracts are contingent on anything. Anyone signing the contract should read it and know what they are signing. With that said, we read, signed and bought here.

[AngieT2]

I assume your offer/contract was conditional on obtaining financing? If so, TV should return your deposit.

NOPE... No Villages contract has ANY contingencies built in, for the buyers. I know, I know...this place is as close to Heaven on Earth as any of us can hope for, but boy oh boy, this is putting a LOT of stress into the situation.

I know it will all work out, but it's the 'working it out' part that is NO fun.

Thanks again, for all the helpful comments/feedback. We so appreciate it!

Angie

[anarick]

I'm not sure I fully understand the situation. Are you saying that you are willing and able to have a home built before you retire, you applied for a mortgage and they turned you down because you are not retired yet??
I believe there are many people currently owning homes in TV that have financed and are still working, traveling back and forth enjoying their future haven.

[Skybo]

You would think if TV is selling like hotcakes they wouldn't penalize you by keeping the deposit if they can resell the lot iot in a reaonable amount of time. I would think that would speak volumes as far as their moral compass. I know it's a business, but when it is as successful as this I think sometimes a happy customer is worth more than the lousy $7500. Don't you???

Really? The developer’s moral compass is suppose to reserve a lot for weeks or months, turning away other perspective buyers who may be interested, and then, for whatever personal reason, return the deposit and then start over?

Don’t get me wrong, I feel for Angie...and Angie I truly hope you can work this out.

But can you imagine how many times similar scenarios play out every day, every week, and every month in TV?

Folks on TOTV say “bring your checkbook”, and we all LOL and agree. But the cold, hard truth is...if you don’t have the cash, or if you aren't sure that you can secure financing...then don’t write that check.

[anarick]

bump

[Sable99]

I guess I am confused too! Or, something is missing from the story. Last year, Mom and I built a designer home in The Village of Charlotte. We are both retired. Citizens First knew from the start we were going to rent our home out long term, unfurnished as my 88 year old mother doesn't want to move to TV full time. We had to put down a larger down payment and have a higher interest rate but we got the loan for our new home.

I hope everything works out for you.

[BobnBev]

Talk to Glenda Adams at Citizens. She is very helpful.

[gomoho]

Really? The developer’s moral compass is suppose to reserve a lot for weeks or months, turning away other perspective buyers who may be interested, and then, for whatever personal reason, return the deposit and then start over?

Don’t get me wrong, I feel for Angie...and Angie I truly hope you can work this out.

But can you imagine how many times similar scenarios play out every day, every week, and every month in TV?

Folks on TOTV say “bring your checkbook”, and we all LOL and agree. But the cold, hard truth is...if you don’t have the cash, or if you aren't sure that you can secure financing...then don’t write that check.

Never said "for whatever reason". Sometimes common sense need to prevail.

[cgalloway6]

I asked about the deposit when it looked like we might not want the lot we initially chose and I'm pretty sure they said the deposit would be put in escrow until we picked a lot. If you choose to not build at all your deposit is probably gone to the developer. Call the sales office for the true answer. Lots of opinions here.

[Cantwaittoarrive]

I would fight for the money to either be switched to another lot or the timeframe extended. our rep had told us that each case is evaluated on a case by case basis.

[Mack184]

Generally when you buy a home you put down a deposit. Since we both sold & bought a home recently I looked at our contracts. They do indicate that if the buyer backs out for ANY reason (other than previously agreed to conditions) they lose their deposit as mitigated damages.

Without seeing your contract, I am guessing that your contract reads more or less the same.

I think it would be best if you got your attorney involved in this process so that you have another voice working on your side.

[graciegirl]

Why is this an issue on this forum? It seems like a private matter. The OP signed a legal contract.

ANY day now, I expect Sweetie to welsh on the one he signed 51 years ago. I am a load. I hope he doesn't. A contract is a contract.

[JourneyOfLife]

Good to know... especially if one intends to build in TV.

[graciegirl]

Good to know... especially if one intends to build in TV.

When you put a deposit down on a contract to buy real estate anywhere it is the same.

We are all grown ups here with very few property virgins.

I also would like to remind any potential buyers that on a new home you can only use a conventional mortgage with no contingincies.

AND that there is an additional bond amount for a typical designer of about 23K that is not part of the price. AND that the IRS issue is still pending.

Please everyone who would like to live here do your due diligence. We should be aware of most of this stuff if we are over 55 years of age.

AND just about every home has a dog here and every single dog here poops.

AND you are taking your life in your hands in January, February and March to drive, ride a bike, a golf cart or walk ...

I am getting a headache.

[Rbgold]

If you cannot transfer your deposit to another lot or home in order to delay building, and cannot obtain a mortgage for the new house, perhaps you might consider a line of credit/home equity loan, etc. on your primary residence to get you the funding needed for the short term. Just a thought as 7500$ is a lot to leave on the table.

[Bavarian]

May I suggest you try a different source financing then Citizens First? Maybe another bank would help you out.

[ilovetv]

The o.p.'s earlier post says this is a "2nd home". If I had a home in California.....from which several couples we know have moved here to get OUT of their falling home values that once were $900,000 but now are $350,000 "if you can find a buyer".....I would not make a contract to buy a $500k+ premier one here until the first one is sold. Or I'd buy a nice villa here for about $200k.

And I would not air on the web my personal money-management skills or lack thereof.

[Roaddog53]

When you put a deposit down on a contract to buy real estate anywhere it is the same.

We are all grown ups here with very few property virgins.

I also would like to remind any potential buyers that on a new home you can only use a conventional mortgage with no contingincies.

AND that there is an additional bond amount for a typical designer of about 23K that is not part of the price. AND that the IRS issue is still pending.

Please everyone who would like to live here do your due diligence. We should be aware of most of this stuff if we are over 55 years of age.

AND just about every home has a dog here and every single dog here poops.

AND you are taking your life in your hands in January, February and March to drive, ride a bike, a golf cart or walk ...

I am getting a headache.

:ohdear:
Wow Gracie. Sounds like you are having a bad day. I hug is always nice when that happens. BUT... hehe.. I feel the EXACT same way as you have stated. You just usually are more diplomatic than others. A contract IS a contract! Everyone tries to get out of it when they don't like it and say they didn't know. Never hurts to ask I guess. The house thing.. Well it makes for a good laugh every time we read some of these too. Why don't people do their DUE diligence when they buy ANYTHING let alone a sizable amount such as a house! Asking for answers here versus going to the source amazes me sometimes. Sure it is nice to get others opinions and recommendations from previous experiences. But each person has different personal situations THEY need to address. We are HOW OLD and what have many been doing all their LIVES that they ask these types of questions on the forums? Nuff said...

[graciegirl]

Wonder if a person would know that if they were a real estate broker?

I am not.

I know someone who is.

I could never work in real estate, too many intrigues and too much pressure.

[Rbgold]

Wonder if a person would know that if they were a real estate broker?

I am not.

I know someone who is.

I could never work in real estate, too many intrigues and too much pressure.

:agree:

[Steve & Deanna]

I would re-read the contract to see if there are any stipulations as to WHEN you have to build a home. If there are no time restraints, sound like the land should be yours...but then again, I'm not a sidewalk lawyer.

[graciegirl]

Who knows? But you shouldn't kid around with a girl scout.

My mom said that.

Even an old girl scout.

[justjim]

When we bought our lot on the golf course you had a year to build. I heard it was 3 months to start now. Interior lot I heard was 6 months. Don't panic and do look at all your options. By the way, we have a mortgage from our bank in Illinois that we have done business with for several,years. We got a lower rate than we could get here. Check around---you still have some time. :boxing2:

[Bogie Shooter]

Agent in TV? Sorry, reread OP, agent somewhere else.........with different laws.

[mickey100]

Well, it may be a lousy contract but yes, you signed it and have to abide by the consequences. I agree with others that just because Citizens won't give you a mortgage, there may be other banks that will, possibly at a higher rate of interest. But once home is bought, and your finances straighten out, you should be able to re-finance if you choose your lender carefully. I'm glad you shared your situation, so others will know how the Developer operates and they can avoid this scenario.

[stuckinparadise]

When we bought our lot we paid the deposit knowing that it was only holding that piece of land. If we did not build within a year, we had two choices: a. Find another lot (your year deadline would start at that point) or b. Lose your deposit. We were able to build on the original lot, so it all worked out. Our sales rep. told us that he worked with a couple who changed their minds 4 times using that same deposit until they finally had a home built.

[gomoho]

Gracie - in North Carolina the contract has a "due diligence" clause and during this time the buyer can get their deposit back for "no reason or any reason". The idea behind this change that took place a few years ago was the buyer would also have to pay "due diligence" money that would not be refunded if the sale fell through and applied to the sale if a closing occurred. Problem was the market was so bad there were very few buyers willing to pay due diligence $ and it wasn't really enforced. Don't know if things have changed or not with the market improving. So yes, there are some states where you can get your earnest money deposit returned.

[gomoho]

Okay - I'll ask - Angie are you same Angie that is a successful REALTOR in Cali and holds an inactive license in Florida???

[Bogie Shooter]

The o.p.'s earlier post says this is a "2nd home". If I had a home in California.....from which several couples we know have moved here to get OUT of their falling home values that once were $900,000 but now are $350,000 "if you can find a buyer".....I would not make a contract to buy a $500k+ premier one here until the first one is sold. Or I'd buy a nice villa here for about $200k.

And I would not air on the web my personal money-management skills or lack thereof.

That pretty much sums it up! Like your last sentence................