Lender Dropped the Ball and Cost Us Thousands!

[Jacob Tudor]

Hey!

Up until now, we have bought our homes in cash. I wish we could continue to do so, because bank mortgages aren’t fun!I would really like to see if I could get some guidance from the BP community and figure out if we have any recourse.I will keep this as brief as possible.

We put in an offer on a house in Michigan.Our realestate agent suggested we put the offer in with a thirty business day close period.We didn’t like the idea and preferred a 45 but, we agreed and our lender related that they would be able to close in that time frame.All of our task to get the loan completed and closed were done in a timely manner.The lender did not schedule the appraisal in a timely manner, then on the day of the appraisal the guy got sick so it was resceduled for a later date  .Once the appraisal was completed, the lender kicked it back for discretionary corrections.At this point we were very much on schedule to miss our close date.Now, we were told several times by our agent who heard it from the seller’s agent that they had a backup cash offer in place and that that offeror had already done an inspection.So we knew they would most likely back out if we busted the close date.However we did get the seller to agree to a week extension, so long as our lender could provide a clear to close based on the date of the extension date.The lender would not provide any firm date, seller was not happy with the banks position and backed out the at the earliest opprtunity.

We spent about 1k for inspection, appraisal, and credit checks.Although we were not allowed to look at the appraisal because it was not finalized, we estimate that the home would appraise for about 10k more than our offer.

What recourse do we have?Do you have any suggestions/advice that might be helpful for our current situation and the future.

Thank you so much for your time,

Jacob

[Chris Mason]

Hi @Jacob Tudor,

I think I can help simplify this conundrum for you.

You hired someone to do a job, and gave them the materials to do that job (your financial paperwork, etc, is the same as providing a painter with paint and paintbrushes). They didn't perform. That sucks. Either you gave them crap materials (eg, your financial house is a mess, like giving a painter crummy paint), or they suck (you provided top notch materials/paint, and STILL got shoddy workmanship out of it), or some combination thereof.

What due diligence did you do when you hired that person? How thoroughly did they vet the materials you provided prior to agreeing to do the job? What reasons, in particular, did you have for hiring this particular person over some other person that in theory has the exact same license?