Legal Question in Real Estate Law in California

Was I mislead by a realitor

I was advised by an real estate agent that the best way to get out of my home which was supposable upside down in the market value was to do a quick sale. All process were started but the request was denied due to the fact the mortgage company stated I had to be owner/occupyent. My realitor did not inform me about this till it was to late. Upon recieveing my Tax information from the mortgage company, I noticed the house was not upside down in market value and that had the house been placed on the market in a normal fashion, I would have not only saved my credit from forclosure but I could have possible made over $5000.00 from the sale. I feel I was mislead and now paying a huge mistake not only in my credit, but in my loss, do I have a case to stand upon?


Asked on 2/29/00, 4:53 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Was I mislead by a realitor

Your facts are not clear. I assume what you did was to quit claim the house back to the mortgage company because you could not sell nor make the payments. A "quit claim deed" returns your interest in the house to the grantee (mortgage company). If the difference in the house's valuation and the mortgage was only $5000 it is unlikely that you would have made any money on the house anyway. Typically realtors charge 6-7% for a sales commission on your home. If your home was worth $100,000 it would have cost you at least $6000 to sell it.

Secondly, the realtor acted as an advisor to you, and did not force you to do anything. You had the opportunity, indeed the obligation, to get other opinions. It is unlikely that you have a cause of action against the realtor. Next time, investigate your options more carefully and get additional opinions.

You indicated that the mortgage company denied your application anyway, therefore you should not have suffered any damages, since you should still have the house. How have you been harmed, other than some inconvenience?

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Answered on 3/13/00, 7:03 pm


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