Legal Question in Real Estate Law in California

False loan promise

The loan agent promised co cost closing FHA loan for us, but once the escrow closing time near he tacked on over $2000 in fees. We had no choice but to sign the loan since there was $100 penalty for each day after escrow closing date. Is this lega? How these mortgage lenders lie. The loan agent even gave us letter saying this was no cost new loan. When I approach the loan agent. He told me that they need to balance the loss due to market change and gave me some b/s that if he removes the fees than the APR for the loan will have to increase. This is not what we received month prior when we decided to go with this mortgage company. Where is justice in this matter?


Asked on 11/19/08, 9:17 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: False loan promise

Sounds like "bait and switch" to me. You could try to find out if the agent or his employer has a license from the Department of Real Estate or Dept. of Finance and file a complaint. Another approach would be to sue in Small Claims.

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Answered on 11/19/08, 12:25 pm


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