Legal Question in Real Estate Law in Tennessee

Mortgage Fraud

I wish to know if we can take any kind of legal action against broker, lender or combination

Broker told us not to shop him that he was only one who get our loan done.

Changed rate from 7% fixed to 80/20 adjustable at 8.9%

1st is a 2/28 ARM at 8.9%, 2nd is Subprime BC 30/15 Yr Balloon at 8.910%

When we tried to cancel loan builder said they would sue us and our realtor also told us we had to do deal. Builder referred us to this lender.

Had us sign and back date new good faith estimate 2 days prior to closing

Did not disclose pre-payment penalty until at closing or the balloon on the 2nd

Charged us YSP which was not disclosed prior to closing.

Lender did not disclose that adjustable program was 6-month arm until at closing

Payment went up in Feb ‘07 due to shortages in escrow account

Thank you


Asked on 9/01/07, 7:44 pm

1 Answer from Attorneys
Grace Gardiner Gardiner & Associates, Attys at Law

Re: Mortgage Fraud

If you suspect Fraud by the group then I suggest you call HUD, the Broker's supervisor and if not satisfied the Department of Commerce over Mortgage Brokers.

FIrst you need to know if based on your credit score if you did not qualify for the the 7% fixed, and which lender offered the 7% and why did he switch to the a subprime offer.

It sound like you believed that you were forced to sign at closing on the belief that if you did not sign you would be sued.

Hindsight is 20/20. At he point where the threatened suit you should have threated to call a lawyer.

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Answered on 9/16/07, 11:51 am


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