Q: Can I hold our lender liable due to their negligence which caused us to lose earnest money deposit and other fees?
We were under contract to purchase our first home. The lender asked for a second extension on the closing date. The Seller was not happy but agreed under the terms that we would forfeit our earnest money deposit if closing did not happen. Our lender assured all parties involved that he only needed 3-4 days and then we could close. On closing day, our lender informed everyone that a second appraisal needed to be performed per FHA rules. He was not aware and a second appraisal could take anywhere from 2 weeks to 6 weeks to be completed. The Seller was not happy and not willing to extend again, therefore, the deal ended and the Seller kept our earnest money deposit of $4400. Can I hold the lender responsible? He led everyone to believe the closing would happen and obviously he lacked knowledge about FHA lending.
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