In need of legal advice for Real Estate

My husband and I are first time home shoppers, we were in the process of buying our first home, but the real estate agent and loan officer could not get us to close on time. At our second addendum/extension the Real Estate bank request to continue the extension only if we release the $1000 Ernest money to them…

At that time everything was on track our loan officer and real estate agent gave us the assurance and the impression everything is going  to be OK we just needed more time. So my husband and I felt like we were taken care of, they told us we were qualified and met all the requirements. So we sign the addendum…

It turns out we were not qualified and lost the deal. Supposedly, the week after Memorial day (05/25/09) FHA raised their credit requirements from 580 to 620. We met the 580+ but unfortunately our credit did meet with the New 620 even though  we have been  trying to close the house since March 31, 2009.

We put in 4 months $1700 and all I got was a Sorry…We are asking for some legal assistance.  Is there any way we can fight for our Earnest Money back. 

Technically we never backed down and the purpose of losing the earnest money is if you change your mind or back down. We have not signed the final denial and cancellation paperwork, because we still promise to buy the House.

Corrina,

I haven't seen any lawyers that frequent this site and for any legal advice, you need to find one. 

Sorry to hear about your bad experience.  Just an FYI, FHA has no credit score requirement, but many lender have gone to a 620 minimum score.  When did you first sign the purchase contract and how long was your loan in underwriting?

Corrina,

Kent is correct. The 620 "guideline" is a lender based requirement. There are still some lenders out there doing below a 620 credit score.