Legal Question in Real Estate Law in Texas

Re: Changes to the Mortgage paperwork after all has been signed

The law recognizes the notion of a "mutual mistake" which can be corrected by a court if the circumstances are proper. If, on the one hand, the floor you were told about and shown when you negotiated the loan was 6% (just to use a number) and the papers said 5%, then it seems there is a mistake and they are entitled to a correction. If, on the other hand, your understanding from the beginning, based on what you were shown and told, was that the floor was to be 5%, then they aren't entitled to a correction. Taking it a step further, if the formula used to calcualte the floor was disclosed to you during negotiations, and that formula was misapplied when the loan documents were prepared, they may well be entitled to the correct calcualtion. Compare the initial truth in lending disclosure and good faith estimate to the final papers. What you don't get is a right to a "gotcha" based on their error.