This is a two part question:

I'm in escrow on a house, and my company has announced a layoff.  The
close of escrow is about three-four weeks after the loan contingency
removal period.
Obviously, if I'm laid off before I get final loan approval, I won't
get the loan.
1) However, if I'm laid off after final loan approval (and the
contingency is removed), but before closing, will I still get the
loan?  (How would the loan company know I got laid off?)
2) If that situation happened, do I still get my good faith deposit
back (because the loan contingency was removed)?

If it makes any legal difference, this is in the state of California.

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Request for Question Clarification by aceresearcher-ga on 23 Oct 2002 00:30 PDT

wraith,

Are you working with a Realtor/Buyer's Agent? If so, they should know
the law on this for your state.

When we bought our house a few months ago, we were required to sign a
form stating that we knew of no circumstance that was different from
when we applied for the loan that might make a material difference in
our ability to make payments on our mortgage. If we had filed for
divorce in the meantime, then failed to reveal that on the form, we
would have been guilty of perjury. If the fact that we had lied ever
came out (as it would, just like your job circumstance probably
would), we could be in EXTREMELY big legal trouble.

As far as the good faith deposit being returned, if you have a good
agent, your contract will have a clause stating that your deposit must
be returned in the event of factors outside your control, such as
failure to receive final financing approval (as opposed to you just
changing your mind about buying the house).

Your agent should know the laws for your state. If they don't, I would
have to question their competence, and recommend you seek other expert
advice (Attorney, or Agent who DOES know the law). I don't think this
is something you want to risk.

Good Luck!