Delayed Closing due to Mortgage Broker

[ITGuy13]

What is the name of your state (only U.S. law)? Pennsylvania

Hi everyone and TIA for the replies...

I recently closed on a home in Allegheny County, PA. We were scheduled to close and all documentation was in order. My Mortgage Broker assured me he had everything he needed. Our closing date came and according to the broker the lender was still waiting on a final report from the home appraiser saying the house had been completed (it was new construction). My broker told me, we would close the next day, this went on for 12 days. We had our movers scheduled and our temporary rental property's lease was up so we had to move. The builder told us we could take early possession (or rather he told us, that we knew where the key was) as we expected it closing to be the next day.

Since it ended up taking 12 days to close, our builder wanted to be reimbursed for his expenses in carrying the house. He had be more than accommodating and understanding through this process and I felt it was the right thing to do. In turn, I want the broker to reimburse me as it was his (or the lenders) fault that we did not close on our agreed to date.

I don't know what the true hold up in closing was as I spoke to the appraiser three times and he told me that he had sent in all necessary documents that he needed to. I'm sure there were other things going on with the broker/lender that delayed this but have no proof and will probably never know. He never returned my phone calls and would give very little information in email.

As I stated before, I am planning to ask the broker to reimburse me for this cost but don't expect him to comply. I am willing to sue him (in small claims court) if necessary to recoup. If I have to take him to court I would plan to sue him for additional damages based on the 12 days.

Please let me know any advice you may have for me or what documentation/evidence I should have in order. My builder and real estate agent both said that they have never seen anything like this and would be willing to assist me in trying to recoup my money from him. I am also planning to file a complaint with the PA Department of Banking.

Thanks!

[bannonr]

Legally, your only recourse is to cancel a loan application and receive a refund of fees paid. If you have a mortgage commitment from a lender, I would look at the terms in that commitment. Since you obviously already closed, there isn't anything you can do. The commitment from the lender, NOT the broker, will give you the insight into what was really wrong.

How long before closing did you apply?

[ITGuy13]

It was six weeks between application and scheduled closing...nearly two months by the time we actually closed. All documentation was provided to the broker within 24 hours of him asking for it. Not to mention, our credit is great, income to debt ratio are good and we had 20+% down.

[Stevef]

Originally Posted by ITGuy13

It was six weeks between application and scheduled closing...nearly two months by the time we actually closed. All documentation was provided to the broker within 24 hours of him asking for it. Not to mention, our credit is great, income to debt ratio are good and we had 20+% down.

You received the benefit of those 12 days that you didn't pay interest, but had the use of the house.