Can I sue a broker for negligence and failure to secure a mortgage?

Original closing date was at the end of last month. All the documentation was given to a mortgage broker at the beginning of the month. We were assured we would close on time. They kept requesting more documents until an extension was imminent. I spoke to them about the likelihood of getting approved and they said its just a matter of documentation, so to file the extension. Seller wasn’t happy but we worked out a deal and extended to until today. It is been “tomorrow” every single day even now. I have countless emails documenting this process. Can I sue for failure to secure the mortgage if seller is determined to collect damages?

Asked on July 20, 2012 under Real Estate Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

What you can do if you are sued and you truly believe that the broker was misreprenseting the process is to bring him in as a third party to the action between you and the seller.  The broker should have coverage and liability insurance.  I would speak with ana ttorney if you are not already using one about the whole matter.  Good luck.


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