Does the loan agency need to pay for the extra financial burden caused by their mistake?

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Does the loan agency need to pay for the extra financial burden caused by their mistake?

My wife and I are purchasing a house with a 60-day closing. Due to military reasons, we even had to extend the date ourselves by 3 days or 1 business day. We will still not close on time due to the loan agencies in my opinion on 2 fronts. 1 is that they were asking for paperwork a week and a half out that could have been done over a month prior with nothing changing as it’s stuff such as tax returns for previous years, pictures of IDs and static stuff like that. Then the second thing is because they used the wrong estimate on the loan estimate after I had a new one sent in and they admitted it was an internal issue that caused that. Due to that, I couldn’t prove I had the substantial amount of money they thought I needed for closing to send to an underwriter but it was no problem to move it along once I noticed their mistake and corrected it. Due to these mistakes, my wife and I whose lease will end will have to either lose our deposit on movers and pay a month’s worth of rent or pay the movers plus holding fees for an unknown period of time plus a hotel that will accommodate us without pets. This will put a financial strain on us that may make it extremely hard to pay closing costs when the unknown time comes.

Asked on July 29, 2018 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Unfortunatelty, they are not liable for these costs, even though they are real. The problem is, there is no obligation to make a loan to you; you have no right to get a loan from them. They could refuse to loan to you, or take as long as they like to make a decison. There being no obligation or duty, there can be liability; there is only liability (or a duty to pay compensation for errors, omissions, etc.) when there is a duty or obligation which was violated, not when the other side is doing something essentially voluntary.


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