Can I sue my loan officer for incompetence or negligence?

[reebster]

Jurisdiction

Texas

A bit of background: for the past 8 weeks I have been in the process of purchasing a home. I have excellent credit and a solid down payment. I was prequalified. When I made the offer, I set the closing date for Oct. 6. Two days later the contract was amended for an Oct. 2 close. I hired a contractor to start work after the closing, and hired a moving company. On Sept. 29 I called him to find out the details of the closing. He didn't call back, so I contacted the company from whom I was purchasing the home. Half an hour later I get a panicked phone call. Despite several written notifications, he never noticed that the closing date had been amended and I would have to delay.

With this I lost my contractor and deposit. There were several rounds of negotiating and his company is crediting me some of the difference. My stipulation was that I had to be able to close on Oct. 5 instead of the Oct. 6 date he was working on. Today is Oct. 4, and again I called for the closing details and he said he still is not prepared to close tomorrow and that it has to be Oct. 6. This will cost me another set of deposits. I still don't have information about how much money I need for closing, or even what my monthly mortgage payment will be. I would switch loan providers but it is too far along in the process but at this point his confusion has cost me a few thousand dollars and the terms of the contract have not been met.

I should also mention that I requested in writing multiple times that he contact an insurance agent I was working with to get my insurance set up, and he neglected to do so for more than a month, until I finally provided his contact information to the agent, who called me in a panic because it was a week before my (Oct. 2) close and he still hadn't heard back.

Do I have any legal recourse?

 

[ElleMD]

If the terms of the contract were not met, talk to a lawyer about suing for breach of contract.

 

[army judge]

There are millions of homes in this country.
If the seller or the scammer doesn't contact you, keep your money, and the next time you contemplate buying real estate hire yourself a real estate lawyer to protect your interests.

It usually costs from $500 to $1,500 to hire such a lawyer and he or she will ensure you're not scammed.

 

[zddoodah]

Can I sue my loan officer for incompetence or negligence?

Anyone can sue anyone for anything.

On Sept. 29 I called him to find out the details of the closing.

Maybe your situation was unique, but a loan officer would not generally know anything about "details of the closing." That's usually quarterbacked by your realtor (or, in those states where attorneys are commonly used for residential home sales, your attorney) and the seller or seller's realtor, in connection with the escrow company.

With this I lost my contractor and deposit.

That's crazy. Delays in closing dates are commonplace. Did you not put anything in your contract with the contractor to account for that? Also, what was so time sensitive about this work that you couldn't simply have pushed everything back by a few days?

There were several rounds of negotiating and his company is crediting me some of the difference.

The difference between what and what?

My stipulation was that I had to be able to close on Oct. 5 instead of the Oct. 6 date he was working on.

Your stipulation? Did anyone else agree to this?

This will cost me another set of deposits.

Then you're making bad deals with whomever your giving these deposits to.

I requested in writing multiple times that he contact an insurance agent I was working with to get my insurance set up

What insurance? Your homeowner's insurance? Some other kind of insurance? Why would "get[ting] [your] insurance set up" be anyone's responsibility other than you? And, obviously, just because you request something doesn't mean the person to whom you make the request is obligated to comply.

Do I have any legal recourse?

Maybe, but certainly not based on anything you've written here. Closing dates are virtually never guaranteed, and while you and the seller may have agreed to an earlier date, that doesn't mean your lender was obligated to have your loan ready by that earlier date. You certainly can consult with a local real estate attorney, but I don't think you're likely to have any recourse.