Construction financing
My wife and I signed the purchase contract for a semi-detached house (about 6 weeks ago). We had the verbal confirmation from the branch manager of the LzO in Bakum that the financing would not be a problem. Based on this, we signed the contract. However, it was later said, NO, there is no financing because I have only been self-employed since July 2009 and must show at least 9 months of self-employment. In addition, we have a loan with this bank (13,000 euros); we increased it by 9,000 euros, which was agreed upon with the branch manager and was supposed to be included in the house loan.
Purchase price 95,000
Additional costs approx. 11,000
plus loan 23,000
total financing amount 130,000 euros.
Everything was known and planned. The "bank person" even assured the sellers of the semi-detached house that our financing was secure and that there would be no problem. Now they say we can only get a maximum of 75,000 euros, my wife's father must take out a loan of 30,000 euros and provide it to us (he has been a customer of the bank for over 30 years, and after he has already signed and the financial situation is known, he must submit various documents from the tax advisor... balance sheets and so on. The bank keeps postponing and says it is under review. In addition, we had increased the existing loan, but now the branch manager has simply put 9,800 euros into overdraft on my account. The bank says the account must be balanced before any financing can be provided. We are 4 weeks behind in paying for the house, and if we withdraw now, we will have to pay damages because the sellers are selling the semi-detached house due to separation and have already bought another apartment. In addition, the move is scheduled for 01/12/2009, the seller (husband) will move into our apartment and we into the semi-detached house, as planned. Furthermore, my wife is heavily pregnant, our second child is due in February, and we don't know what to do.
1. Do we have a chance to challenge this with a lawyer and sue for the financing amount of 130,000 euros, as we had the confirmation and the branch manager even discussed the outstanding issues without addressing our financial situation and said the financing was fine so far. We also incur damages, as we increased the loan, and because the bank wants to split everything into multiple loans, we would end up paying over 1100 euros per month, compared to 600-750 euros with a loan of 130,000 euros, which is a huge difference.
Would a legal expenses insurance cover the costs?
