Legal Question in Real Estate Law in California

Re: Mortgage Broker lied--stuck with Bad Loan

Based upon the facts as you have laid them out, there is likely little to do, unless you can establish that you were defrauded by the loan broker. No one forced you to sign the docs, whether or not it was Good Friday. You can always take time to review them. The broker's verbal statement is essentially meaningless, if the written documents say otherwise (which they undoubtedly do). In the docs you signed was the actual loan, along with a prepayment disclosure, and I presume that both show the prepayment penalty. Also in the docs you signed will be a HUD-1 which would show how much the broker's fee is/was. You had the opportunity at that point to object to the fee. Many people make last minute objections, which sometimes force the broker to waive junk fees.

In the absence of other facts establishing that material facts were concealed from you, or that written representations were made which turned out to be false, I would imagine that your best bet at this point is to find a better loan.

Re: Mortgage Broker lied--stuck with Bad Loan

First -- you don't mean retribution -- that's not what you want.

You really got a bad deal, and extricating yourselves will be made more difficult by having signed the papers. I know what it's like to be sitting in the escrow office waiting to close and the lender doesn't show up because it has no funds for the closing; its happened to me personally. But signing for a garbage loan rather than fail to close was probably a tactical mistake. (Can't be too critical without more facts).

At this point, I think you need the assistance of a retained lawyer. The lies may be hard to prove, since a lot of this is oral, but maybe you can put together a case that will bring about a satisfactory pre-trial settlement. Often a lender faced with a suit will waive their prepayment penalty.