QUESTION
Can I sue my lender for the delay in closing our loan and not locking in our rate??
Asked on Oct 01st, 2013 on Real Estate - California
More details to this question:
we purchased a 2nd home. It was a new home and were told we had to use the builders lender, even though we were approved by our previous lender and had a great experience. What a mistake! We were pre-approved with the builders lender and what a disaster that was. Long story short, we did not close in 30 days, it was more like 60 days. We later found out the lender did not lock our rate and in that time frame the rate went up almost one point. I happens to go to our lender innout first home and he was able to quote us about one point less than what we were about to close. Bottom line I feel the lender did not work in our best interest and by them not locking our rate our mortgage payment if approx $200 more a month ($72k for the life of the loan). Do we have any recourse??
1 ANSWER
Yes, but it probably is not worth the time and effort, unless some of your neighbors are willing to join in the lawsuit.
The discounted present value of $200 per month for 30 years at 4% is $42,000.00. If you paid an attorney $300.00 per hour and took the case all the way through trial, it would probably cost close to $100,000.00. If you won, you would probably be entitled to attorneys fees, because there probably is an attorneys fees clause in the purchase agreement or the loan documents.
You might be entitled to treble damages under the unfair business practices law or for fraud. That would at least get your damages up over he attorneys fees.
If the seller and its lender did this to 100 or more buyers in the subdivision, then the number goes up to something like $4,200,000.00, maybe even a TTP Class Action.
You might try Justice Reed at (925) 253-3572 or Sturdevant and Sturdevant 415-477-2420.
Dana Sack
ds@sackrosendin.com
Answered on Oct 01st, 2013 at 4:18 PM