Legal Question in Real Estate Law in California

Riped off by Loan Broker

We refinaniced our home and one of the terms of the loan was that $10,661 was to be deducted from the equity check we got to go into an escrow to pay the 1st 6months of loan payments, we also got charged twice for brokers fee one was $5340 and $3000 that was included in the $10661 for a total of $13661 to be taken out for loan payments and broker fee. Well none of the $13661 went into an escrow account but instead into his pocket and said we signed the papers. In other words he lied to us about what we were signing and stole our money. What recourse do we have? Doesn't the broker have to inform you of what your signing and make sure you understand it because what he said we were signing is not what we got. Isn't there a law that says that the loan has to make sense and not put you in a situation of possible foreclosure. Thank you for any advice. Were in the Sacramento area if you can suggest or recomend a lawyer.


Asked on 5/03/07, 4:34 pm

3 Answers from Attorneys
H.M. Torrey The Law Offices of H.M. Torrey

Re: Riped off by Loan Broker

You may have a very strong case for fraud and/or breach of fiduciary duty/contract. You should retain legal counsel asap to review your case and associated documents to further advise you in full and/or offer aggressive representation. Our Law Firm could be willing to handle this in full for you.

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Answered on 5/03/07, 4:49 pm
Deborah Barron Barron Law Corporation

Re: Riped off by Loan Broker

Mortgage brokers are licensed by the Dept. of Real Estate and you may be able to place a complaint there although you will not recover money. The Sacramento County District Attorney has a real estate fraud dept. that investigates and prosecuts fraud. But if you want to recover money, I suggest you hire an attorney to file a civil suit against the broker.

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Answered on 5/03/07, 6:32 pm
Roy Hoffman Law Offices of Roy A. Hoffman

Re: Riped off by Loan Broker

You MAY be able to sue the broker for damages. However, generally speaking, you are required to READ all of the documents a broker (or anyone else for that matter) asks you to sign BEFORE you sign them.

While brokers have more of a duty to refrain from taking advantage of you, the broker's argument is going to be that you were given the papers, read them, and signed them with full knowledge of their content. I would suggest that you IMMEDIATELY see an experienced real estate attorney in your area and have that attorney review all of your documents.

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Answered on 5/03/07, 8:05 pm


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