Are we able to go after the lender?

Are we able to go after the lender if they delay a sale of a house and
we lose the house to foreclosure? The buyer was ‘pre-approved’ for a
203K loan but the lender held up the closing multiple times causing us
to lose the house to Fannie Mae.

Asked on June 15, 2016 under Real Estate Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, you cannot sue or otherwise go after the lender for this reason. A lender is not obligated to make loans at all--it is voluntary on their part. Because they have no duty to make or close the loan, they are not liable for any delays in the loan.

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