Home Buying in 21215>Question Details

Leia, Home Buyer in Baltimore, MD

Is there legal recourse against a bank for not meeting a closing date through no fault of the borrower?

Asked by Leia, Baltimore, MD Thu Dec 27, 2012

I was due to close on my home purchase on November 12, 2012. I cooperated fully with all requests from my future mortgage lender, and responded to all of their requests in a speedily manner. However, now almost 2 months later, I have not closed on my home yet!!! I was told there was information that needed further verification. But, the problem that I have is why am I receiving this news almost 2 months after the original closing date. Is there any recourse I have against the bank for being inefficient and downright unprofessional? I am beyond infuriated with them! Suggestions are quite welcomed. Thanks!

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Answers

6
Hi Leia,

Hopefully you have this worked out by now. However, may I ask what bank you were working with? Letting other buyers know who gave you this kind of run around may help future buyers to steer clear of this lender.
0 votes Thank Flag Link Mon Jul 22, 2013
Oh, I have seen BofA take two months; I have seen a Year!!!!

You can speak ill,
You can smite,
You rant and rave,
You can talk about them in the line at the supermarket,
You can tell your story to Baba Walters,
But you cannot sue them; because you have suffered no financial loss.
This is not meant to be legal advice, I wouldn't deign to do that.
0 votes Thank Flag Link Fri Dec 28, 2012
Leia,

You waited two months, not even Bank of America is that slow in underwriting. Your option would be to withdraw your loan application for a mortgage in "writing" and start over with a new lender. If you loan
is a FHA loan "DO NOT" wait for the loan to be rejected. Once a FHA loan is rejected or declined starting over again with a new lender can be problematic.

Your best case scenario is to have your file assigned to a new lender but our present lender may want compensation to release your mortgage file to a new lender.

Greg Myers
RE/Max Realty Group
0 votes Thank Flag Link Fri Dec 28, 2012
Hi Leia,

Yes you have recourse. FIRE THEM! They have either taken your loan knowing it wasn't viable, or are so inept that can't get it closed in over 90 days (presumably your closing date was 30 days from contract date). I have a great local lender you can call for advice. Pete O'Donnell at First Home Mortgage (410) 299-2043. He'll give you straight answers. Best of luck to you.
0 votes Thank Flag Link Fri Dec 28, 2012
Thank you Ms. Roskelly. If I do fire them at this point, the entire process has to start over, correct? That means that the earnest money deposit, home inspection and everything else has to be done and paid for a second time?
Flag Fri Dec 28, 2012
Leia,
No bank is obligated to loan money. The "pre-approval" is a promise to loan when all the conditions they require are met. Apparently, the lender is not satisfied that those conditions have been met.
Your options would be to continue to work with this lender and ask the questions, "what more can they want?" Or start from scratch with a new lender.
Without knowing why things have been delayed this long, I can't tell you which would be the best in your case.
0 votes Thank Flag Link Thu Dec 27, 2012
Thank you Mr. Tabit. The lender has not given me any reason as to why closing was delayed, only that there were "employment verification issues". All of my employment is clearly documented and from established companies, so I am not sure what the real problem is.
Flag Thu Dec 27, 2012
I would ask to speak to a supervisor, however, being almost 2 months out from your original closing date it seems that there are much larger issues holding the closing up. Ask them to provide a written statement defining what is delaying the closing. The delay will also mess up your rate lock. This extension is an additional fee most banks charge. I would demand that they waive it. You ultimately chose the lender so there is not much other recourse you can seek unless they defrauded you.
0 votes Thank Flag Link Thu Dec 27, 2012
Thank you Mr. Smoot. I will follow your advice. I understand that I chose the lender, but unprofessionalism and dishonesty is not what I either expect in a business transaction. It is completely unacceptable. Thanks for the tips!
Flag Thu Dec 27, 2012
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