Asked in Banking, Consumer Law, Contracts and Real Estate Law for Michigan

Q: Real estate question. Hello all. Can I sue my mortgage lender?

I was buying a house and closer decided to end the deal due to lender not meeting closing date. I know meeting closing date is not guaranteed but every time I try to contact them they never called back. When I was finally able to contact them (two day before my closing date) they said they needed more paper work. I told the mortgage processor that I wanted to move the closing date so they can have more time and I won’t be in risk of loosing the deal. He insisted that was not necessary and he failed the meet closing date and never contacted me back. After 20 days overdue, seller decided to cancel the deal and now I don’t have a place to stay since my lease was due, I didn’t renew it and landlord has already a tenant waiting for it. I lost money of appraisal, money of inspection, money of documentation and now I have to incur in expenses of Airbnb and storage for my things. Is there any kind of negligence from part of the bank (btw, a big crédit union)

Thank you!

2 Lawyer Answers
Brent T. Geers
Brent T. Geers
Answered
  • Grand Rapids, MI
  • Licensed in Michigan

A: Are you using a Realtor? That person is probably the first person you should (or should have been) in contact with. Generally, since the mortgage lender is not a part of the contract you made with the seller, it would be hard to assign liability to them.

David Soble
David Soble
PREMIUM
Answered
  • Business Law Lawyer
  • Farmington Hills, MI
  • Licensed in Michigan

A: One would need to determine if you received written notice of any outstanding conditions or items necessary to complete your mortgage application. If not, it is highly unlikely that you could sue the lender for their negligence however, unless you could show that you were already approved for the mortgage. Up until the time of a firm loan commitment, the lender can and will find ways to deny your mortgage, so bringing an action against them would be difficult.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.