I, , applied for a loan from Infinity Group. In the process, I was told that everything as far as financing looked good. I meet with my realtor and gave a $500.00 earnest money deposit. The finance company was getting a Good Faith Document for me. I was later told that my financing fell through and that I would need to find another source. In other words, I was not qualified to purchase the home. Another option came to mind. My mom was willing to sign on the loan with me. I was then told on October 20th, 2008 that my mom would have to be the only one on the loan. I was not thrilled and asked if there was any other way to add me. I was told NO! My mom proceeds with the loan, just in her name. In that time, I didn’t give permission for them to continue to use my earnest money as the security deposit because my name was no longer on the agreement. On October 22nd, 2008, my mom receiver her Good Faith Estimate and realized that the amount they needed for a down payment was ridiculous and she didn’t want to presue it. Now I am getting threatened they are going to cash my check even though my financing didn’t go through

those places are scams. they probably have already cashed your check. ANY place you have to pay money to to get a loan is a scam. a good loan company will take fees out of the loan..not want you to pay it up front. Call your bank and have the payment stopped NOW..but it's probably too late. That's how they get people. 100 people pay them $500.00 ..they never loan money.. who's getting screwed

Um earnest money is standard practice, done with every home sale in the US. This is hardly a scam. However, I agree that you should contact the bank and stop payment on the check. All earnest monies, if the financing falls through, MUST be returned.

Earnest Money is just that. It is a modest deposit with the listing agent's broker to indicate your intentions of performing on the contract. Most Purchase Agreements will indicate that IF the buyer is unable to secure financing, the earnest money will be returned, even though the PA has otherwise been properly executed. In the current market, this is especially important, as underwriting guidelines are changing by the day. Formerly well-qualified borrowers are being denied for the lamest of excuses. In your case, it appeared as though the agent never deposited your check. This OUGHT to have been done within the first couple of days after the seller accepted your original offer. (Laws may differ in your State, however). In any event, you were denied financing, so the original contract is null and void. That they insist on using YOUR check on you mother's offer is questionable, at best, unless you authorized it. Since you mother was only qualified if a substantial down payment was made, that may have also given her an out. Without seeing her offer and the terms stated on the PA, I cannot say with any certainty. What does YOUR agent have to say about all of this? After all THEY are supposed to be representing YOUR best interests. Good luck.