Legal Question in Real Estate Law in Texas

Changes to contract after closing:

I just bought a house in Richardson, Texas. I closed on the property on February 26th. Approximately 3 weeks later, the ''lender'' contacted me and told me I had to sign a document increasing my margin interest rate (5-year ARM). The ''lender'' told me that they could not sell the loan to a bank unless I agreed to sign the documents giving me a higher (0.25%) margin interest rate. I told them that I would not sign the documents because the deal was done at closing. They faxed me an ''Errors and Ommisions'' document (that I had signed at closing) saying that they have the right to require me to changed the details of the deal if there are inaccuracies or errors at closing. I keep asking them, but they have not provided me proof that the ''oversight'' was an error. They say that the documents were drawn up incorrectly, and now they are threatening to foreclose on the property. Can they legally do this? And, do I REALLY have to sign the document?


Asked on 4/01/04, 9:36 pm

1 Answer from Attorneys
Joseph A. McDermott, III Attorney at Law

Re: Changes to contract after closing:

You have correctly identified the key question: is this really an error correction or are they just changing the deal? Refer to the preclosing documents, particularly the loan commitment letter, to see what the real deal was. If they are making a switch and they try and foreclose, you may be able to sue to stop it.

Read more
Answered on 4/02/04, 11:43 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Texas