Negligence, Other Injury Negligence Claim against Loan Officer

[rowster]

I am currently happy in my new house. Getting here was such a disaster. If any of this is true, let me explained what probably happened.

December 2014: I have notified my loan officer that I wanted to 1) refinance my current home to release my VA Home Loan and 2) so that I can purchase a new home. Refinance in motion.

December 26, 2014: We have made an offer on a house and got a sweet deal. Refinance middle of completion.
January 6, 2015: Earnest money sent and cashed by Seller, Closing date February 18, 2015, after that $200 a day per diem.

January 12, 2015: Refinance on current home, complete.

January 18, 2015: Loan officer notifies me that Loan Company for purchase is concerned that we had a refinance an owner occupied loan. Purchase loan rejects us, says that refinance was done incorrectly, that the refinance should have been completed as an investment property and not as an owner occupied loan. Cannot have two owner occupied loans in same state.

It was agreed that I must refinance, the refinance. However, in the process I must pay in to achieve the 33% equity for premium financing. I had already attained the status prior in the first refinance, but loss this status after the refinance (the amount of the loan had gone up after the refinance). Therefore, I had to pay 10,500 to pay down loan to achieve premium financing on the 2nd refinance.

February 1, 2015: My wife and I go to pre-planned vacation.

February 18, 2015: Extension made.

March 7, 2015: Loan officer threatens he will quit because I am pushing him too hard.

March 9, 2015: HUD is different from night prior because loan officer did not submit all documents. We are shorted 3,000 dollars from the VA home loan deal.

March 10, 2015: I fly my wife in to sign paperwork because 3rd notarized statement is not approved by Purchase Loan company. ( I had arrived earlier in my vacation). My son has an allergy on the plane, I pick them up in Vancouver, we drive down 2 hours to sign paperwork, because basically, I was homeless (refinanced house rented by tenants) and wanted to get it over with.

I feel that if it had gone smoothly, and if my loan officer had not screwed up the first refinance, I would be up 11000 dollars. This is no longer in my account (as a big chunk of it paid off the refinance amount).

Do I have a case of negligence claim? Should I pursue this?

 

[army judge]

I don't see negligence in anything you revealed.

Even if negligence had been involved, what duty did the lender owe you that was breached? None, so forget any theory of negligence. You had a choice to find mother lender. A loan isn't a right. The lender had no duty to expedite the process, or serve you in the manner you desired.

Why? Because you weren't forced to give the lender, you chose, your custom. Your living situation or problems attendant thereto were yours alone. The lender isn't required to respond to your schedule. You wanted their money, you jump through their hoops.

You're free to hire a lawyer and pursue this matter to your satisfaction. If you do, be prepared to prove your damages, not simply assert them.

 

[rowster]

Duty of Loan Officer, Proximate cause, Actual Loss

I don't see negligence in anything you revealed.

Even if negligence had been involved, what duty did the lender owe you that was breached? None, so forget any theory of negligence. You had a choice to find mother lender. A loan isn't a right. The lender had no duty to expedite the process, or serve you in the manner you desired.

Why? Because you weren't forced to give the lender, you chose, your custom. Your living situation or problems attendant thereto were yours alone. The lender isn't required to respond to your schedule. You wanted their money, you jump through their hoops.

You're free to hire a lawyer and pursue this matter to your satisfaction. If you do, be prepared to prove your damages, not simply assert them.

Army Judge: Forget the living situations, it's just a distraction you're probably not seeing the point because of it.

It's me vs. Loan Officer, not me vs. Lender. I did what I must and jumped through the hoops the Lender required. It is the Loan Officer, who negligently did the act, which is, refinanced my current property with an owner occupied loan.

1. The loan officer (LO for this message) purposely refinanced my townhome into an owner occupied loan, when he knew I was trying to purchase a home with a VA home loan. The proximate cause is that he knew that this was not legally correct. I myself, did not know this was happening, and I did not know what damage this would do. There can only be one owner occupied loan, unless I had tons of cash, which he knew I didn't.

a.) Does LO not foresee that if the Lending Company found out this was done, the Lending Company would reject us. This is my case for proximate cause.

b.) I'm not sure if you understand that there are costs involved in a refinance. There are many costs, and I paid it. It increased the amount of the loan, and I paid about $1000.00 in escrow fees.

c.) To emphasize, I paid more into the second refinance, which occurred 30 days later. To get into premium refinancing, I had to pay 10k, to achieve the 33% equity.

In summary, because of the loan officer's negligence, it cost me money. The duty of a loan officer is to perform duties in which he was certified for, that was the contract. I feel that there is a breach in contract.

 

[army judge]

Army Judge: Forget the living situations, it's just a distraction you're probably not seeing the point because of it.


In summary, because of the loan officer's negligence, it cost me money. The duty of a loan officer is to perform duties in which he was certified for, that was the contract. I feel that there is a breach in contract.

After practicing law for more decades than I care to remember, serving as a judge for 50% of that time, I know of what I speak. Frankly, it doesn't matter what I think, believe, or feel. I'm not the one you'll have to convince.

What does matter is your thinking. Moreover, no matter what the contract allegedly caused to happen, YOU agreed to it, my friend. You failed to be as diligent as you should have, if you now claim the contract to have been defective or onerous. If you were unclear as to what you were agreeing to do, you should have sought an independent legal opinion. Such an opinion can't come from the other party, either. Well, it can, but if you act upon any oral representations or explanations, you end up with the negative results of such a poor and ill advised decision.

You're not going to sit in judgment of any lawsuit you might file. You've drawn legal conclusions that aren't buttressed by any laws known to law. Your theory of your case completely ignores any legal reasoning in any of these 50 United States.

Even that doesn't matter, because the law in Washington state would apply, UNLESS (as is the case in these matters) your lender documents declare the laws of NY, DE, NV, CA, or another state to be controlling. No way anyone but you could know the answer to that issue, OP.

It is never possible to PROVE what someone knew or knows, unless that person testifies to such knowledge. Wanna bet the LO provides a completely different view of these events and how they unfolded?

The law is an extremely complex beast because humans are complex beasts.
Legal issues, and the theory of any case never synthesizes into an easily understood, explained, or defined answer.

Last but not least is your conclusion that negligence applies in a contract dispute.
I don't know if there was a breach of contract. But, let's say for purposes of discussion that the lender did breach the contract. You can't sue for negligence in a contract breach, because the lawsuit is based on contract law, not the common law tort of negligence. Your contract isn't with the LO, rather its with the originating lender. The LO was (and likely remains) simply and agent or employee of the lender, unless the LO is incorporated and bought your note with his or her firm's assets.

Can you sue the LO based on negligence? Heck, you can sue God because you believe He caused it to rain on your outdoor wedding. The initiation of any lawsuit is the easiest thing to do. You should ask, if I bring this lawsuit, what's the likelihood I'll prevail?

Frankly, if you brought the matter to me in my capacity as a licensed attorney, I'd listen attentively. I'd not take your case, however. I'd probably not reveal to you why, except to say I'm far too busy at the moment to do you and case justice. My declination would be based under ethics, not legal reasoning.

So, discuss it with lawyers in your area. See what advice you can glean. Then deliberate and decide.

I'm sure you lost money, if that's what you represent. I've lost money, too. Unless you can prove fraud, or some other illicit inducement that caused you to agree to this loan, the loss you suffer alone. The law doesn't concern itself with one party choosing to enter into a bad deal. The law is only concerned with (in contract disputes) if the other party breached a duty under which he or she obligated themselves to discharge or perform as agreed to within the four walls of the document. In short, if it ain't in the document, no one will be held accountable for not performing it as stipulated under written seal, his or her signature.

 

[disagreeable]

I do not see negligence. I see you getting caught trying to commit fraud.

 

[rowster]

Please explain.........................

 

[mightymoose]

You have nothing to work with here. You chose the loan company you wanted to work with.
Negligence requires much more than showing you could have saved money if things had gone differently.

 

[army judge]

You have nothing to work with here. You chose the loan company you wanted to work with.
Negligence requires much more than showing you could have saved money if things had gone differently.

Plus, no where in any contact dispute is there a basis for a negligent claim, if you sue, your lawsuit is based on a breach (or breaches) of the contract terms.