Legal Question in Real Estate Law in Wisconsin

Mortgage lender points the finger

I recently purchased a new home. On the day of closing I received new infomation regarding the terms of my loan (interest rates and time period). I was told that I was receiving and adjustable rate mortgage at 4.95% for 13 months and after that every six months it could vary 2%, up to 11.95%.

Six months later I received a statement from the bank showing that my interest rate is at 8.2%. I called my mortgage lender and the real estate co that I was working with and both parties still agreed that my rate was to be at 4.95% for 13 months. I called the bank and after talking with 6 different people finally reach one who knew about this type of loan. Apparently I have a COFI Adjustable rate which is only good for 1 month at 4.95% and every month after that it can fluctuate.

I would never have agreed to such terms. Both the mortgage lender and real estate rep misinformed me of the conditions of my loan and neither company is offering to do anything about it. What can I do?

Also, I never received a disclosure stating the conditions of my loan prior to closing. Please help!


Asked on 9/26/00, 3:01 pm

1 Answer from Attorneys
JAY Nixon nixon law offices

Re: Mortgage lender points the finger

I would need to see all the documents you

signed in order to give you any intelligent

advice. Generally speaking, you are bound

by the terms of any documents you signed,

regardless of whether or not you understood

them. Verbal misrepresentations generally

will not get you out of executed written

documents. The moral of the story is that

you should have an attorney at closing to

explain things if you don't understand the

documents. Send me a private e-mail for further

information.

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Answered on 10/29/00, 10:58 am


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