Forfeiture of Deposit
Investor Purchasers:
Uninsured Sales: 100% of the deposit will be forfeited to HUD for failure to close regardless of the
reason.
Insured Sales: 50% of the deposit will be forfeited to HUD for failure to close if the purchaser is
determined by HUD to be an unacceptable buyer.
100% of the deposit will be forfeited to HUD if the sale fails to close for any other reason.
Owner-Occupant Purchasers
Return 100% of the deposit when:
There has been a death in the immediate family (purchaser, spouse or children living in the same
household).
There has been a recent serious illness in the immediate family that has resulted in significant
medical expenses or substantial loss of income, thus adversely, affecting the purchaser's
financial ability to close the sale.
There has been a loss of job by one of the primary breadwinners, or a substantial loss of income
through no fault of the purchaser.
For an FHA insured sale, HUD (or a D.E. underwriter) determines that the purchaser is not an
acceptable borrower.
For an uninsured sale, the purchaser was pre-approved for mortgage financing in an appropriate
amount by a recognized lender and, despite good faith efforts, is unable to obtain mortgage
financing. "Pre-approved" means a commitment has been obtained from a recognized mortgage
lender for mortgage financing in a specified dollar amount sufficient to purchase the property.
There is other equally good cause, as determined by Ofori, in keeping with the spirit and intent of
the above policy.
Return 50% of the deposit when:
For an uninsured sale, despite good faith efforts by the purchaser, there is an inability to obtain a
mortgage loan from a recognized mortgage lender.
Forfeit 100% of the deposit when:
No documentation is submitted.
Documentation fails to provide an acceptable cause for the buyer's failure to close.
Documentation is not provided within a reasonable time following contract cancellation.
Vacant Lot Sales:
The purchaser is considered to be an investor and instructions pertaining to investors
will apply.