Legal Question in Banking Law in California

Bank miscalculated loan payoff - now saying we owe

3 months ago we converted our construction loan to a perm mortgage. The bank that held the construction loan called this morning to say they miscalculated before and now we owe them an addtional $30K. They said they would be more than happy to let us take a 2nd out on our house at a low interest rate to pay the additional ammount off, well im sure they would but realy should I be paying interest on their mistake? When the loan is finalized and done dont they sign the title saying we have paid them off in full? and if so is that legally binding? Do I have any rights here?


Asked on 11/30/05, 4:33 pm

1 Answer from Attorneys
H.M. Torrey The Law Offices of H.M. Torrey

Re: Bank miscalculated loan payoff - now saying we owe

It all depends on the overall facts or totality of the circumstances. Meaning, if their unilateral mistake was of such a nature that you either knew or had reason to know of the mistake, the court will not let you take advantage of a fairly reaonsable error per se. However, if you did not know or did not have reason to know such a mistake was made, under the circumstances, the bank should not be able to enforce the new balance or payments therein. If you would like further assistance, contact us directly.

Read more
Answered on 11/30/05, 5:48 pm


Related Questions & Answers

More Banking Law questions and answers in California