Legal Question in Real Estate Law in California

Mortgage Fraud
I have 2 MTA option ARM loans with Countrywide. They have been miscalculating the rate on both loans. I found this by adding my fixed margin(s) to the ''published'' MTA index for each month over the last 36 months and comparing it to the rate they are actually charging me. They have overcharged me by .125% to .75% consistently over the last 3 years. Since both loans are neg am and I make the min. payments, my principal balance is increasing each month and by an inflated ''miscalculated'' rate.

Per my notes (which are identical except the margins) the lender is to calculate the new monthly rate by adding the margin to the MTA index that is published no more than 15 days prior to the statement. Thus, June's rate may be based on the MTA index published in May. Whether I use the current or previous months published index, they are still over charging my rate.
My request for reviews are continually ignored by Countrywide, as my principal balances grow using the wrong, inflated rate. At this time I estimate $15,000 overcharged between the 2 loans. Is this a breech of contract?

I would like to know what laws are applicable and what damages I may seek. Any advise would be truly appreciated.

Asked on 6/20/08, 7:30 pm

Mitchell Roth MW Roth, Professional Law Corporation

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Re: Mortgage Fraud

Yes. You may have rights under the notes to sue and be awarded reasonable attorneys fees as well.

Answered on 6/21/08, 4:31 pm

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