Legal Question in Real Estate Law in California

On 7/01/2009 Werequested the making homes affordable program from my mortgage co..
3 monthes later our application was accepted and we were put on trial period while our other documents were under review
9 months later rerceived letter of rejection due to
1. Wrongly stated our property had 4 units. Our home is they only unit in the property.
2. Wrongly stated were our income/debt ratio was over the 31% .Our ratio was almost 50%.
Instead our mortgage co. offered their version of a modification that wasnt much diffrent then the original loan. Mortgager told us due to the deadline we should accept it while they review our previous application. So we had to start the process all over again and submit more paperwork .
4 months later we were wrongly rejected again because we didnt send paper work on time We have fax conformation we sent requested data promptly at all time.
We tried talking to the underwriter or anyone with authority but we are not being listen to.
We are frustrated and now deeper in debt due the long delays. we feel our mortgage co. is not acting in good faith. What does the law say about this conduct? Do we have options? Foreclosure is someting we are trying to avoid but they are making it imenent?

Asked on 8/19/10, 8:12 am

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

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As to the errors you are claiming: First, I assume someone else filled out the application form for you. Were you given a chance to review it? Did you sign it? Second, "one-to-four units" is a fairly standard category in California law. Are you sure the application said "four units" specifically, rather than merely a box being checked verifying that the structure was in the one-to-four category? Finally, "over 31%" is not a wrong answer when your ratio is almost 50%. It's like the grocery clerk asking your age when you try to buy beer. "Over 21" is a correct answer even if you are 50. So, I can't say you have a strong case against anyone for these alleged mistakes on your application. I'd suspect there is another reason.

Answered on 8/24/10, 9:01 am

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