Legal Question in Real Estate Law in Illinois

Mtg and refinance

2 yrs ago or so, we took a 2nd mtg to finish our basement. I thought it would be good to roll the 2nd and 1st together and about 6 months after getting the 2nd mtg went to refi toi get them into 1 mtg.

Part of the Mtg brokers plan was to have us refi once, boost our credit scores and then refi a 2nd time 6 months after. At closing ( in the brokers office) I was told there was an additional 30K that needed to be paid. I thought it was the 2nd mtg , but later found out it was a prepayment penalty on my first mtg. I asked what to do, and I was told ( by the broker) refinance. I am out the 30K and now have been stuck in a different mtg that is about to adjust and become $900 more a month. Do I have any legal recourse against the original title co. for not posting the 2nd sooner. I was told that had that been on file, the new lender would not have processed the mtg. Do I have any recourse against the broker? Thanks


Asked on 8/29/07, 11:34 pm

1 Answer from Attorneys
George Zuganelis Zuganelis & Zuganelis, Attorneys at Law, P.C.

Re: Mtg and refinance

You have to understand that the broker gets paid by the lender. The higher the interest rate he puts you in, the more money he makes. The more times you refinance, the more money he makes. You may have a cause of action for consumer fraud against the broker. He was in a conflict of interest situation and he advised you to refinance so he could profit. Please call me for a free consultation.

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Answered on 8/30/07, 12:13 pm


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