Broker Ignored My Right to cancel.....

[WLarsen]

What is the name of your state? California.
I was considering refiancing my mortgage to consolidate my credit card debts. But what the broken said over the phone was totally different on the contract. My payments would be a lot higher and my rate would also be higher. I decided not to except and faxed him the Notice Of Right To Cancel within the 3 days I was giving to go through 120 pages of
very serious details. Then I waited for the broker to call to get me to change my mind. But he didn't call. A week later I found out that my mortgage had been paid off. Then I get a big envelope via UPS with several big checks in it to pay off my credit cards.

Obviously my cancellation notice had been ignored. So, this loan can't be legal, they have to reverse everything. How am I going to fix this. I'd like to put this broker in jail for a while if possible because every word he spoke was false and then he denied me my right to cancel. So, I'm open to any advise what I should do to get out of this mess. Do I need a lawyer and go to court or what? Is there an easy way out of this? Will this cost me a small fortune in legal fees?

[LindaP777]

Just curious . . . were you told to FAX the Notice Of Right To Cancel to them within the 3 days? I'm wondering if you should have taken it to them personally, or mailed CRRR.

[danno6925]

I decided not to except and faxed him the Notice Of Right To Cancel

Not good enough. You needed to send the original signed copy to them via a certified, trackable method - fedex would have done the job perfectly. All that your fax transmission report will prove is that you sent a fax to them, but not that you intended to cancel.

A week later I found out that my mortgage had been paid off.

So you waited a week before you called them? I would have been on the phone while my fax machine was still sending them the message.

Obviously my cancellation notice had been ignored

You're assuming that the fax # was correct, and that the person who was supposed to receive it actually did get the fax. A lot of presumptions on your part.

So, this loan can't be legal, they have to reverse everything

Considering that they sent you the checks you knew you had coming, I would have to say it certainly looks legal to me.

Other than the "Because I really REALLY want them to reverse it" argument you've presented, on what basis should they reverse this loan?

You don't mention your frantic call to the title company demanding they retain any and all funds in their posession, and that they make NO disbursements whatsoever. You didn't mention that you informed the new lender you were exercising your right to cancel. You don't mention calling your old lender and telling them not to accept your payoff. You offered zero dilligence outside of faxing a statement to the broker, who has no incentive to acknowledge he received that cancellation.

I'd like to put this broker in jail for a while if possible because every word he spoke was false and then he denied me my right to cancel.

Probably not possible. He did his job, and you perceived his statements in a manner inconsistent with how they were intended. You heard what you wanted to hear.

He denied you nothing. You brought a knife to a gunfight. All you had to do was make everyone involved aware of your intent. Instead, you meekly sent one fax and ASSUMED it would all go away. You were obviously incorrect in your assumptions.

How am I going to fix this.

Refinance the loan you just closed. You'll be a little wiser this time around. I'll keep an eye out for your post on the prepayment penalty the new loan probably came with.

Is there an easy way out of this?

Not anymore. You needed to scream from the rooftops to EVERYONE involved BEFORE that 72 hour ROR period ended. Now that it has, you are stuck with the loan you agreed to at the settlement table.

[WLarsen]

I was told that all I had to do was fax in my cancellation within the 3 days if I decided not to accept the loan. That was my understanding. The broker decieved me, took advantage
of me and much of what he told me was lies. So the law allows this to happen? I can't do anything about getting screwed? This can't be right.


Well, thanks to all who responded. I have learn a very expensive lesson.

[moburkes]

You can FAX the right to cancel. But you FAXED it to the wrong company. You are required to FAX it to the lender, not the mortgage broker. Right on the document it should have stated your notification options.