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How to proceed when Lender forced me to pay 3 collections then backed out on commitment?
Hi, I recently had a mortgage app thru BoA (I know I know... shameful). On my report where 3 collection account. 2 Medical and 1 utility. All 3 added up to 370$. I was initially approved for a Conv loan with 10% down. As part of the commitment I was told by the underwriter I needed to pay all 3 collections accounts BEFORE closing, which I did. Basically BoA took their sweet time and went over the contract closing date which was exactly 60 days from when i initially replied. Anyway, after more hoops I was finally ready for final approval. The 3 days before closing they called to inform me my credit report had expired and they needed to run a new report. I agreed.... 30 minutes later I received a call from the processor sating that my credit score had dropped 30 points and I now needed to have a 20% down payment. The only thing that changed was the activity date on the 3 collections accounts, which I paid thru my CC and all the bank fees(less than $1k).
Now the seller is suing me for 3k and refusing to return earnest money due to the lender backing down after doing what they required me. Do I have any recourse against the bank? Seller attorney is saying I purposely damaged my credit report, which I did not.

Funny part is after the lender issued a denial letter I was able to remove 2/3 collections from my report thru disputes and the fact they stopped reporting it. And Ive almost gone up 100 points based on Credit Karma.

Thanks for any advice you can give.

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