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HomeSource Real Estate Asset Services, Inc. is the "New" Management and Marketing Contractor for HUD in Maryland and the District of Columbia.

CONTRACT CANCELLATION & EARNEST MONEY DEPOSIT

1. Investor Purchasers:

Uninsured Sales – The purchaser will forfeit 100% of the Earnest Money deposit for failure to close, regardless of the reason.

Insured Sales – The purchaser will forfeit 50% of the Earnest Money deposit for failure to close if purchaser(s) was pre-approved and is determined by HUD or Direct Endorsement Underwriter to be an unacceptable buyer.

The purchaser will forfeit 100% of the Earnest Money deposit if the sale fails to close for any other reason.

2. Owner Occupant Purchasers:

The Purchaser(s) will receive 100% refund of the Earnest Money deposit under the following circumstances:
1. There has been a death in the family (contract holder, spouse, or children living in the same household).
2. There has been a recent serious illness in the immediate family that has resulted in significant medical expense or substantial loss of income, thus adversely affecting the purchaser’s financial ability to close the sale.
3. There has been a loss of job by one of the primary breadwinners, or substantial loss of income through no fault of the purchaser.
4. On an insured sale, where the purchaser was pre-approved and HUD or a Direct Endorsement underwriter determines that the purchaser is not an acceptable borrower.
5. On an uninsured sale, the purchaser was pre-approved for mortgage financing in an appropriate amount by a recognized mortgage lender and despite good faith efforts is unable to obtain mortgage financing in a specified dollar amount sufficient to purchase the property.
6. For other good cause as determined by HomeSource or HUD.

ON ALL SALES the purchaser will forfeit 100% of the deposit in those instances where no documentation is submitted, where the documentation fails to provide an acceptable cause for the buyer’s failure to close, or where documentation is not provided within a reasonable time following contract cancellation. HomeSource must receive the documentation no later than close of business on the tenth day following cancellation of the contract.

Earnest Money Deposit

Winning Bidders must include a Copy of the Certified Funds for Earnest Money Deposit with the contract made payable to the broker as follows:
500. For purchases under 50,000 by Owner Occupants
1000. For purchases over 50,000 by Owner Occupants
2000. For ALL purchases from Investors
1% of list price, but no less than 500. and no more than 1000.00 for GNND Purchasers.