Should I take my loan officer or mortgage company to court?

Deal Score0

Our escrow was supposed to close on August 13, 2010. We would have been able to close on time, but the underwriter ordered some “desk review” of our appraisal and demanded more comps to support our price. The appraiser mysteriously got these comps after looking for DAYS–btw, we have not received a copy of this desk review yet. We ended up closing on August 17, 2010 ( 2 days after the state of California stopped accepting applications for the $ 10,000 home buying tax credit–California has apparently run out of funds). Do I have any recourse at all against the underwriter or my loan officer that lagged on ordering the initial appraisal and had us date some papers earlier so that she remains in compliance. I think it was the GFE or the appraisal order that had to be done within 72 hours of them running our credit. One of these forms was the one we were asked to change the date on.
Could I get the $ 10,000 that they cost me from a government program I would have qualified for? Does that even sound like a case?

  1. Reply
    February 12, 2011 at 2:39 am

    I would seek out a professional escross attorney for consultation. We can not advise on legal matters.

  2. Reply
    February 12, 2011 at 3:25 am

    If you win it would be the first time I have ever heard of anything like that and I have been in real estate sales for 33 years.

    I think that tax credit programs should have been designed to edge out gradually- after two months 10 down to 6,000 then after two more months down to 3,000 then zero after two more months. There would have been a spurt of activity just before the end of each value and not such a rude stop at the final end.

  3. Reply
    February 12, 2011 at 3:42 am

    Your good faith estimate (GFE) should have been signed within 3 days of you applying for the mortgage loan. You should have also been given a truth in lending (TIL) about the same time.

    The underwriter has guidelines that need to be taken care of, other wise your mortgage loan would not be approved. They have nothing to do with the time frame in which you are attempting to get a tax credit and the time expire or the funds are exhausted.

    A desk review might have been ordered by the investor that will purchase your mortgage loan note. The underwriter might have found out on Aug 12. A desk review is not uncommon in the mortgage loan process. You will not get a copy of the desk review. Your mortgage loan company is required to give you a copy of your appraisal. The desk review is an internal audit of your appraisal, that you- did not pay for either direct or indirectly.

    A closing is normally an on or about date. You should check with your Escrow Instructions, normally this is listed and most everyone in the mortgage process will indicate this.

    As for a law suit against the mortgage company, well you might sue anyone you like, one question come to mind that will be asked in court by many attorneys and that is why did you not start your house buying process in April or May thus this would have been eliminated.

    Appraisers are not now ordered by the mortgage brokering company, they now have to order through a different method and have no decision as to when the appraisal would be completed. nor who would be actually doing the appraisal.

    If the mortgage loan had closed when you expected would you now be concerned about the date you signed your GFE?

    I hope this has been of some benefit to you,good luck.

    “FIGHT ON”

  4. Reply
    February 12, 2011 at 4:10 am

    The short answer is no, you can not sue anyone for refusing to give you money until they were completely sure they were willing to part with it. You can not claim a loss of anything because they had their money in their possession instead of yours.

    Leave a reply

    Register New Account
    Reset Password