Legal Question in Real Estate Law in California
False mortgage 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 legal? 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?
3 Answers from Attorneys
Re: False mortgage loan promise
Representations are made in the preliminary statement of expected fees that you received when you applied for the loan. Does that contain zero fees? Please contact me if you have any other questions.
Re: False mortgage loan promise
If you want your $2,000 back quickly and easily, Small Claims Court is probably the way to go...obtain and study a slef-help law paperback on how to win your case in small claims. If your main purpose is to stop the cheating of the public, determine who holds what license and file a formal complaint with the licensing authority. If you want to accomplish both and are sufficiently motivated, do both. You'll need to understand and use all the documents you have - contracts, disclosures, good-faith estimates, closing statements, etc.
Re: False mortgage loan promise
If the closing statement was substantially different than the preliminary statement given you to open the loan, they you could theoretically file suit for refund of the excess charges. It's probably appropriate for small claims court, a couple thousand dollars.
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