What is the name of your state (only U.S. law)? Arizona
I had wanted to purchase a condominium as a second home for my family and planned on moving in my son who is a full time student at a University who current apartment lease was to run out the end of Dec 2009. I had done some research and had found that although I qualified for a loan, because it was a condominium, I would be required to put down 20% on the loan. I found a local mortgage broker in early Nov 2008 and after asking him several pointed questions as to whether I would definitely be able to get the loan using funds withdrawn from a credit card for the down payment, and close by 15 Dec 2008, I went ahead and signed a contract with the seller, provided the seller with $1500 in earnest money, withdrew funds from my credit card for the down payment at a cost of $900, paid $350 for an appraisal, $25 for a credit report, and paid $60 for a termite inspection. By the afternoon of 19 Dec 2008, the mortgage broker could not secure a loan through an underwriter and I because I had to find my son another apartment to lease I had to tell the broker to cancel the deal.
My question is this... Because I was assured (verbally) by the mortgage broker that there would be no problem with attaining the loan and closing on time I expended closing costs of approximately $3000. Can I recover these funds from the mortgage broker since I would never have entered into any of this without his assurance of completing the purchase and getting the loan in the timeframe I required?
I had wanted to purchase a condominium as a second home for my family and planned on moving in my son who is a full time student at a University who current apartment lease was to run out the end of Dec 2009. I had done some research and had found that although I qualified for a loan, because it was a condominium, I would be required to put down 20% on the loan. I found a local mortgage broker in early Nov 2008 and after asking him several pointed questions as to whether I would definitely be able to get the loan using funds withdrawn from a credit card for the down payment, and close by 15 Dec 2008, I went ahead and signed a contract with the seller, provided the seller with $1500 in earnest money, withdrew funds from my credit card for the down payment at a cost of $900, paid $350 for an appraisal, $25 for a credit report, and paid $60 for a termite inspection. By the afternoon of 19 Dec 2008, the mortgage broker could not secure a loan through an underwriter and I because I had to find my son another apartment to lease I had to tell the broker to cancel the deal.
My question is this... Because I was assured (verbally) by the mortgage broker that there would be no problem with attaining the loan and closing on time I expended closing costs of approximately $3000. Can I recover these funds from the mortgage broker since I would never have entered into any of this without his assurance of completing the purchase and getting the loan in the timeframe I required?