Can I sue my bank for delaying a loan modification until I was forced to sell and relocate?

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Can I sue my bank for delaying a loan modification until I was forced to sell and relocate?

After a year of paperwork delays from the bank, I was denied a loan modification. Since I met the legal qualifications to obtain one, I contacted an attorney. They guaranteed I’d have a loan modification done within 3 months time but I was unable to pay the $1500 to retain them, so I reapplied to the bank. After several more months of paperwork delays, I was forced to sell my property to avoid foreclosure. To this day, I have no home of my own.

Asked on May 15, 2012 under Real Estate Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

No, as sympathetic as your case is, you unfortunately do not have a legal cause of action or claim. That is because banks are NOT required to modify loans--they are encouraged to do so, yes, but they are obligated to. Without an obligation or duty to modify loans, they cannot be liable for any delays in modifying them or failure to modify.


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