Legal Question in Real Estate Law in California

Re: Loan Agent failing to deliver on her ''Good Faith'' Estimate

The loan documents need to be reviewed by a local attorney. If they say what you say, then, you can try to get "specific performance" of the loan with the agreed upon interest rate. It really depends upon the documents. Good luck and thanks for inquiring.

Re: Loan Agent failing to deliver on her ''Good Faith'' Estimate

The underlying question here is whether the lender (or the broker) were contractually bound to make the loan at the lower rate. A binding obligation can sometimes be found even when the contract contains "escape clauses" that might, for example, allow the broker or lender bow out if your house burned down or you filed bankruptcy prior to closing.

It is just impossible to tell whether the broker or lender is sufficiently bound by the express terms of a contract, or the implied covenant of "good faith and fair dealing" so that you could file and win a lawsuit, without reading all the pertinent documents.

Most loan brokers and lenders have learned from experience how to draft documents that protect them from client lawsuits should a negotiation turn sour, or if they make a handling error. Thus, there is a fairly high probability that the broker (or lender) has protected itself.

Nevertheless, you probably can, and should, get a free initial consultation with a local contract or real-estate attorney. Within the 1/2 hour or whatever time they'll give you without charge, you should be able to get a sufficient review of your loan documents so that the attorney can advise you whether you are likely to win or not, and why.

The question of damages should also be looked at. A 5/8% difference in rate may or may not be a significant injury to you, depending on the principal amount and whether the other terms of the two deals were different (points and other fees charged, amortization period, etc.).