Escrow Fall Out
During escrow period when a house goes into contract to be sold, Escrow Fall Out is when the buyer either backs out or is unable to achieve financing for the property. A buyer may chose to back out for reasons such as the value of the house has decreased, they discover another property they favor, or they realize they simply cannot afford the property.

A buyer typically loses their earnest money deposit when they have an escrow fall out.

 

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