By Admin on Mar 30, 2008 in Renting & Real Estate
Vanja asked:
I took a mortgage 6 months ago and was told by my agent that it is a 5/1 ARM. He said the note is for an option ARM but that the adendum makes it 5 year fixed. I read the note, but read it as he told me. Turns out it is an option ARM and my interest rate goes up to 9%. He says that the bank made mistake and he is “trying to fix it”. The problem is that there is a pre-payment penalty of 20K. Can I sue him for this?
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I took a mortgage 6 months ago and was told by my agent that it is a 5/1 ARM. He said the note is for an option ARM but that the adendum makes it 5 year fixed. I read the note, but read it as he told me. Turns out it is an option ARM and my interest rate goes up to 9%. He says that the bank made mistake and he is “trying to fix it”. The problem is that there is a pre-payment penalty of 20K. Can I sue him for this?
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Hi, my name is Eunice Saunders and I am a Real Estate Agent. You can sue anyone for anything anytime! However I would not advise this course of action as it will cost you more than it is worth and you will probably have a hard time finding an Attorney that will take your case. Try to work with your Broker or hire a new one and see if he can “fix it” or start shopping for a new mortgage. Good Luck! Eunice
EUNICE TRIGGER SAUNDERS | Mar 31, 2008 | Reply
I’ve been in the real estate business since 1973 and seen this type of thing happen before. Like Eunice said you can sue the pope for rape but proving it is another matter. You do have another course of action; you could choose to have the regulatory bodies in your state do an investigation to see if indeed you were banboofeld. Most lenders in most states are regulated by the Financial Institutions Divisions of your state and you can fill out a form that will require them to determine if indeed the action you described is a violation. Another Department is the Attorney General’s Consumer Protection Division. I would send you the links to those places but I don’t know your state.
Here are some links that might be able to give you some direction:
Federal Statutes Laws having to do with Banking, from Cornell University*:
Federal Code Laws having to do with Banking from Cornell University*:
FDIC Emerging issues in Banking*:
Real Estate Settlement Procedures Act (RESPA) [about closing costs & settlement procedures]:
FTC: High Rate – High Fee Loans (know your rights):
Finally before you take a legal course of action please have an attorney review it so that they can inform you whether you have a case or not.
Buena Suerte
newmexicorealestateforms | Apr 2, 2008 | Reply
You know i hear more and more story’s how these mortgage brokers and Realtor have bent people overr a barrel, and total wreck people lives. They do this for a quick dollar, I sure i will see in the news soon how some guy who’s house has been foreclosed on , wife left him and loss every thing he has, just walk in to a office and shoot some fool that screwed him over right in the face, since he has lost ever thing.
From what i have herd how some people got screwed ove i know I would meet them in a parking lot with a baseball bat.
Best of luck it sound like you have every right to be pisssed offf big time.
Drew | Apr 2, 2008 | Reply
You can sue anybody for anything. The question is if it’s worth your time. It sounds like he messed up and should fix it. Give him a chance to rectify it first before you get a lawyer involved. If everything you signed up front matches the loan you were given, you won’t have much of a case anyways. Press him to do the right thing… maybe he can pay the costs to refinance you into the product he was supposed to put you in the first place.
mortgage help | Apr 4, 2008 | Reply
From what you are saying, it looks as though your agent made a misrepresentation; you can sue for this, especially if your disclosure documents reflect a 5 year fixed, even though the closing documents are otherwise.
J. Baig
Attorney at Law
517-980-0526
517-579-0021 (fax)
General Civil Practice limited to the State of Michigan except for Immigation and Social Security Disability cases, which are accepted nationwide.
jlbaig | Apr 6, 2008 | Reply