Mortgage Appraisal Fail
Can i sue my mortgage broker for us missing out closing and losing the house?
I am working with a broker to a get loan for a house, the first bank we tried fell through so we pushed closing back two weeks since he said that would be enough time. a week and a half later he let us know he needed more documents which we got to him in 2-3 days. By this time he had only 3 days left before closing. We missed closing and the sellers were not interested pushing back closing which made us lose our earnest money, appraisal, inspection money, and the $8k tax credit. Can we sue him since he had sufficient time ask us for these docs and send the information to underwriting but failed to do so?
Very likely not.
The contract you signed w/ the broker probably included something to the effect that,
The broker is not a bank and that they are in no way liable if you do not get the loan nor do they have any control of loan approval.
Dan Mitchell on the Failed Mortgage Modification Program
2010 Budget Pt 2
Financial Sector: On the financial sector side, domestic deposits of commercial banks declined marginally during 2009, while credit accumulation was severely constrained by the downturn in productive activity.
The above mentioned are the basic requirements in order to qualify for a home loan. Secondly, I was interested to know how big a home loan I could get considering Mortgage Appraisal Fail. As soon as I knew how much, I could start searching for a house.
Mortgage Appraisal Fail
Can I recover expenses incurred for a property we were planning to buy?
My husband and I contacted a mortgage broker almost two months ago for a loan to purchase a duplex. He approved us right away and signed all the paperwork.
We submitted our offer and the owner accepted it. We proceeded to have inspections and appraisals done on the place. In all, we spent over $1000.00, including the earnest money.
On the week of closing, the broker notified us that he had not been able to secure 20% of the loan, so we signed an extension.
To this day, the broker keeps telling us, our real estate agent, and the buyer that we are approved. Still, for one reason or another he keeps failing to have the paperwork in at the title company for us to be able close. Since the extension has now expired, we are no longer under contract.
Exasperated, we have decided to no longer purchase this place, but were wondering if there is a place where we can report this individual, and if we can sue him to get at least some of our money back.
Check with your state’s financial commission and see first off if the broker has to be licensed, there may be penaltaies or a guaranty fund through the state. Then your best bet is contact an attorney and ask those questions of them.
USUALLY (and I stress usually as this varies from state to state) if financing cannot be obtained and the contract was contingent on financing then you are not in breach and should be able to get your EMD back. Again check with an attorney or even ask your aget to clarify the contract for you.