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  1. #1
    Registered User Semi Pro Member
    Posts
    274

    Borrower Sue Lender for Not Granting Loan in Time

    Can a borrower buying a house sue the lender they applied with for being so inept during the process which caused the buyer some major losses?

    Let's say there are multiple delays by the underwriter, regional manager of the company, and the appraiser?



    As of now, I think there is little recourse for the buyer except for the CPFB perhaps?

  2. Borrower Sue Lender for Not Granting Loan in Time
  3. #2
    Registered User Senior Member
    Posts
    120
    Did the buyer lose the sale, or just have to delay the closing?

    If they lost the sale, what are the buyer's provable damages? The lost deposit and out of pocket fees to the lender. But what else?

    If they seller agreed to delay closing (and why not ... I bet this happens often where the lender is late and the closing is delayed a few days), are there any damages?

    And how do you prove lender incompetence vs. a buyer who might not have strong enough credit to underwrite easily (especially under current rules)?

  4. #3
    Registered User Semi Pro Member
    Posts
    339
    I recall seeing so many complaints against one lender and delayed closings to cancellations. A class action suit might be available. Also, states usually have a real estate recovery fund.

  5. #4
    Registered User Senior Member
    Posts
    195
    These lenders have a lot of ammo and plan B's.
    Countrywide and WAMU were at the center of the financial crisis debacle. All that happened is the "companies" fell apart but the CEOs and upper mgmt simply formed another mortgage company that is still essentially Countrywide and WAMU got qcuiered by JP Morgan Chase. So they are now Chase Bank (promoting the same zero fee) checking accounts and once has the lowest mortgage rates of any bank.

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