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VA Loan paperwork mishandling

Discussion in 'Banking, Finance, Investments' started by Rodney, Jun 20, 2019.

  1. Rodney

    Rodney Law Topic Starter New Member

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    Jurisdiction:
    North Carolina
    About 2 months ago (April 14th) I received, and accepted an offer to purchase my property in NC. The purchaser is a Veteran and needed to secure a VA loan. This person was pre-qualified for the loan amount he was asking for. The closing on the property was scheduled for 5/23/19. Based on the pre qualification, underwriting and information from the loan manager at Lendingtree.com I went ahead and put earnest money on a property that I wanted to purchase (which was contingent on selling my property). In the meantime I went ahead and paid for inspections, title searches, moving expenses, legal fees, etc. While all of this was going on, the lender kept pushing back the closing date claiming that they were waiting for paperwork from the VA. This has gone on thru several closing delays and a month past the closing date. Now I have found out that the lending manager (at Lendingtree.com) failed to request the needed documents from the VA until AFTER THEY SCHEDULED THE FIRST CLOSING DATE. More specifically, form DD214 - which is a military discharge form. In the meantime, the contract I was in to purchase my property has expired and the seller will not renew it again. Bottom line I am out well over $2000 because of the incompetence of the loan manager at Lendingtree.com. Question - is there any way to recover all of the money I've lost due to the mishandling of this loan?
     
  2. adjusterjack

    adjusterjack Super Moderator

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    No. Sorry, you counted your chickens before they hatched.

    And you allowed the extensions so there's no breach on the part of the buyer.
     
    hrforme likes this.
  3. Rodney

    Rodney Law Topic Starter New Member

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    I was looking more towards action against the incompetence of Lending Tree, not the buyer.
     
  4. adjusterjack

    adjusterjack Super Moderator

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    Lending Tree is not your lender. You have no standing to take any action against Lending Tree.
     
    hrforme and Zigner like this.
  5. Tax Counsel

    Tax Counsel Well-Known Member

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    Sorry, but almost certainly the answer is no. The lender was dealing with the buyer, not you. As a result, the lender made no enforceable promises to you and had no obligations to you. The buyer was the one with whom you had the contract, and you evidently gave the buyers the extensions that allowed things to go on for so long.
     

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