Legal Question in Business Law in California

Re-finance Broker failed to lock the loan with the bank

hello,

We refinanced our mortgage for our home in CA through a broker. We agreed to lock the rate for a 15 years fixed loan at 4.625% no point and no fee. It would reduce our monthly payment by close to $200 for the next 15 years. We provided him all the paperwork as requested and his assistant confirmed vis email. On March 9th, he sent an eamil and told us the bank will not honor our loan and draw the doc because the bank was so behind on processing the applications. I went to see the personal at the bank, but he said the reason for not processing our loan was due to my broker's missed the deadline. The bank asked me to deal with my broker. What should we do? We lost the best rate in history and the financil loss is thousands of dollars. Please advise. thank you.


Asked on 4/19/04, 8:19 pm

3 Answers from Attorneys
Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

Re: Re-finance Broker failed to lock the loan with the bank

Looks like malpractice. Will the bank personal sign a declaration as to those facts?

Read more
Answered on 4/19/04, 8:49 pm
Michael Olden Law Offices of Michael A. Olden

Re: Re-finance Broker failed to lock the loan with the bank

Well, you can sit and watch the computer screen for answers or you can immediately get yourself to real estate/litigation attorney to protect your rights. If what you say is aptly completely true on its face with no variables, your broker screw that and you ever write to sue your broker for damages. More importantly your broker wasn't honest with you and therefore defraud you. Sell get off your chair and go to the following. Don't wait. Be pro aggressive before your broker is in another country.I have been practicing law in this legal area for over 30 years and understand your problem well. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000.

Read more
Answered on 4/24/04, 8:46 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Re-finance Broker failed to lock the loan with the bank

Is the rate lock in writing, and have you met all the preconditions to both the lock and the loan itself? If so, the broker's failure to secure the lock appears to be professional negligence (malpractice). I would suggest an initial (free) consultation with an attorney to determine whether the broker has any obvious defenses, and if not, have a demand letter sent. A lawsuit may be necessary, but you may obtain an acceptable settlement offer before trial.

Read more
Answered on 4/20/04, 1:33 pm


Related Questions & Answers

More Business Law questions and answers in California