QUESTION
Can a buyer sue a mortgage broker over losing an earnest money deposit. On a home purchase due to mortgage brokers negligence/incompetence.
Asked on Apr 22nd, 2015 on Real Estate - California
More details to this question:
Have a buyer who may lose $2,000 earnest money deposit due to incompetence of mortgage broker. They have handled his file in such a manner as to cause several extensions and eventually may cause him to lose his deposit $2K+ costs of appraisal, inspection an additional $1000+. Lender has specifically told me his staff has made blunders.
1 ANSWER
You can sue them for up to $10,000 in small claims court. No lawyers.
The risk of small claims court is that if you win, the other side can have a re-trial in a regular court with lawyers, by just filing an appeal. By choosing small claims court, you waive the right to any appeal.
Dana Sack
Answered on Apr 23rd, 2015 at 9:10 PM