QUESTION

Lender late closing for mortgage

Asked on Jul 02nd, 2015 on Real Estate - California
More details to this question:
Hi My lender is delayed in closing my escrow. I did my all paperwork and transfer of money. I move-out of my apartment and now paying hotels expense. Lender don't want to pay any penalties and these late closing bills. This is for my condo purchase in California, orange country
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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Perfectly timing ending the lease of your apartment and moving into your new home is almost impossible and rarely successful. Buyers end up paying for both properties for at least a week or two. By moving into a hotel with a nightly rent substantially higher than your apartment, you made a bet that you could accomplish such timing, and lost. There's nothing you can do about this before the loan is signed and funded and the close of escrow is completed. If you threaten to sue or demand compensation, the lender will either freeze, cancel your loan application completely, or demand a release of all such claims as a condition to doing anything else. Instead, be nice, cooperate, and then demand compensation for the delay AFTER the deal is completed. You can sue for up to $10,000.00 in small claims court. You have a better than 50-50 chance of winning, but only barely. It will be a close call, but without attorneys involved, you won't invest anything but your time in preparing the case and appearing at trial. No attorneys are allowed in small claims court. Congratulations on becoming a homeowner, ... soon. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack  
Answered on Jul 06th, 2015 at 4:28 PM

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