We decided to buy new home and applied for the loan with lender 40 days before closing. Now we are past our original closing date and still waiting for the loan to get approved. Lender knew original closing date from the beginning and did not gave us any hint that it might take longer for them. Seller is charging $300/ day for the closing date extension. Whose responsible for this extra cost?
The answer is most likely that you will be responsible for the extra costs. I assume that you freely agreed to pay the closing date extension fees. It is very unlikely that the lender agreed to pay for or reimburse you for any extension fees required to be paid as a result of delays in funding the purchase loan. However, if you can find either a written agreement in which the lender agreed to pay for the extension fees, or if you can prove that the lender orally agreed to pay for the extension fees, then you may be able to recover these extra fees from the lender. Just because the lender may have known that there was a closing date does not mean that the lender assumed liability for not being able to fund the loan on time.
I note that $300/day ($9,000/month) seems very expensive as an extension fee, unless the purchase price of the house is significant.
I agree with the previous response but it is still possible that you mortgage broker or loan officer or lender dropped the ball somewhere and was negligent. Get as much information as you can about why it has taken this long including the steps taken and related dates with with respect to processing your loan. They will probably be reluctant to give you much info, but you can try and see what you get. Then you may want to talk to an attorney. Good luck on your closing.
Legal disclaimer: The answer provided: A) is for informational purposes only, B) is not intended to constitute legal advice, C) should not be relied upon in lieu of consultation with an attorney, and, D) does not establish an attorney client relationship. The answer may be different if all of the facts were known.
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