Legal Question in Real Estate Law in Florida
Home Equity Line of Credit Early Closure FEE
In November of 2004, I refinanced my existing mortage. During this process the Title Company requested payoff amount on my HELOC without my knowledge or approval. The amount of the HELOC would NOT have affected my eligibility to refinance the first mortgage. I was assessed an early closure fee for the HELOC, although the loan documents clearly state that this fee only applies if I request the account closed. The HELOC grantor insists that since I signed a ''Borrower Signature Authorization'' , that the Title Company has the right to request the closure on my behalf. I have spent more then 30 hours trying to resolve this issue. It is my understanding that a ''borrower Authorization Signature'' is for the purpose of collecting information relative to the loan application (such as current debts, credit reports, income, etc.)I would like to know if the HELOC grantor has the right to assess me a fee when I did not request the account closed.
1 Answer from Attorneys
Re: Home Equity Line of Credit Early Closure FEE
You have a dispute as to the limits of the signature authorization terms. It is important that you request a copy of the terms from the bank and if they do not reflect the terms as you understood them then you may have a small claims case depending on the amount of damages. However, there are no guarantees in litigation and you should try to determine based on the amount you are being charged if it is worth your time or paying an attorney to dispute the charges in court.
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