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)
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.
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.
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