Can I Sue??? Lender troubles...

Question

So I know this has happened to a billion people and I has happened to me more than once.... Long Story Short:

So I'm buying a property and I have taken care of everything for the lender days after contract. However a week before close they wanted to extend and asked for a million other things. Week later, they asked for a billion other things again, delaying the process further and the seller is asking me to pay for the wait. A week later, they literally sent me a list of things they need which I kid you not, is EVERYTHING I have sent before INCLUDING things they said they NEVER would need. It's as if they are starting from Ground 0. and if I don't close next week, the seller will take my earnest, threatened to sue, and I will lose all inspections/appraisal, etc.

I have an email trail showing that everytime they ask me for a document, I send it within the hour. Can I get them for negligence or something? I have literally grown a head of gray hairs at 26 for their stupidity.

Michelle Thomas · Answer

@David Zheng   No I don't think that you can sue. However, I would like to piggy back off of @Allen Fletcher ...If this happens again, not only would I call the lender daily ... I would get the name of one person and call that same person over and over again.  I would create a pain point for that one person ...I'd call every day, then twice a day, next every hour. I would even call every half an hour if need be and ask the same questions over and over (Is it done yet? and Did you get that?). I have even called from a different number when they start sending my calls to voicemail. And Yes, I always leave a voice message. Every. Single. Time.

You will be surprised how well this works and how that "one person" will even check on things outside of their duties. Just to get your file closed and rid of you.

If it's the larger call center situation and I can't get back to the "one person".  I write down the names of everyone that I speak with along with the date and time. So if something is not done I have the name of who I spoke along with date and time. This is much more powerful than saying I spoke with "someone" about this already.  And yes, I think you should file with Better Business Bureau (BBB) and Federal Trade Commission (FTC) and post on social media site.  Good luck to you.

David Dachtera · Answer

@David Zheng,

Sounds like it's time for a face-to-face with the lender and find out what's going on. Something is wrong here. Take your attorney with you.

Russell Brazil · Answer

You do not have legal recourse.

Id suggest the next time around using a good lender.  One of the biggest mistakes I see people make is they choose the lender that quoted them the lowest fees or the lowest interest rate, then they run into problems like this.

Allen Fletcher · Answer

@David Zheng

In my experience with lenders it always pays to call them daily to make sure everything is going well. As the saying goes, "the squeaky wheel gets the grease" make sure you are the making noise and keeping on them to keep you in the loop. My success rate has increased and the number days needed to close has decreased due to this action on my part.

For your current situation, you may have no recourse except to never use them again, give them an honest review on google, facebook, etc. and make sure that you file an honest complete with the Better Business Bureau (BBB) and Federal Trade Commission (FTC).

Good luck,

Allen Fletcher

Account Closed · Answer

Haha...sounds like Wells Fargo.

I feel your pain - I've been there.  I don't have solutions - when I went through this with Wells Fargo, I got upset with them and walked away from the $750 earnest money.

David Zheng · Answer

@Michelle Thomas Thanks for that. I actually am already doing that including blowing up each and every employee's email box. yes I literally send my questions to their entire office that I grabbed from google.

I have a pretty big social media following and I will be telling friends to completely rip them apart online and everywhere as well. I'm so sick of people not doing their jobs. They literally complained that they spent 16 hours underwriting my loan in 4.5 weeks. and basically got nowhere. like...wtf. I spend 16 hours a DAY getting my business to where it is.

David Zheng · Answer

@Nick Colamarino my agent was telling me they could go for what the contract was for. I.E. the price of the house. which made 0 freaking sense to me cause if they are going to get that much money, I should get the house as well because that's also under contract.I literally hate how banks have no recourse from doing a Sh*t job

Nick C. · Answer

If you could sue for a lender screwing up a loan like this, they would be getting literally hundreds of lawsuits filed against them a day from buyers, sellers, realtors, title companies. The bigger the bank, the more pathetic they are. My guess is your only course of action would be to dump them and find a better operation.

On a side note, what contract are you using that allows the seller to seek more damages than just the EMD? Do Missouri contracts not protect the buyer in the event they can't secure financing?

David Zheng · Answer

They sent out loan commitment and are not following through with it. they are telling me they still need docs after sending that out to me and the seller.  are they allowed to do that? I've worked with this lender before. They have all my files. it was rough before but it's impossible now.

Jaymie S. · Answer

If your contract is contingent on financing how can the seller keep your earnest money? I went through this very scenario with Wells Fargo. Now I have a good local community bank that I deal with.

Can I Sue??? Lender troubles...

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