Bait & Switch Good Faith Estimate (Legal Action)

[mrpauly]

TX

I just recently signed a mortgage contract for construction rate for prime + 1 which equals 4.25% and today at closing they changed to 5.75% without any notification. Obviously, they got me by the b*lls cause I need to sign otherwise do this process over takes forever.

This is ridiculous and how are they able to get away with this especially with the mortgage mess that has been occuring?

Any legal action once I sign, etc? This caused about $2,500 extra due to 1.75% rate change.

Paul

[Kiawah]

Did you pay the premium to lock in the rate when you applied, or let it float to the current market rates at closing?

[HUD-1]

If you have a wriiten lock in agreement at 5.25%, you have a case. if you have no rate lock agreement, then you were floating until closing, at which time the rate is set. A Good Faith Estimate is just that, an estimate, not a contract.