What Happens if You Back Out of a Home Sale After Making an Earnest Money Deposit?

What Happens if You Back Out of a Home Sale After Making an Earnest Money Deposit?

An escrow agency -- a trusted independent third-party agency, such as a title company or law firm -- will hold the earnest money deposit. What happens to your earnest money deposit if you don't purchase a home? If you decide not to follow through with purchasing a home, you could potentially get your earnest money back -- or you could potentially lose the entire deposit that you made.