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loan officer sold nonexistent loan

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hambu

Junior Member
What is the name of your state? CA
hello, thanks for listening.
it has been two months since closing on our house and we've recieved the first official mortgage bill--it was quite different from what we expected. we asked our loan officer (who is in atlanta, GA) about it, and he agreed that it wasn't the loan he had sold us. we talked to the lender (IndyMac) and they disagreed.
we then searched our files and found the preliminary loan agreement (HUD1?) and the closing loan papers. to our surprise, they were, in fact, different from each other. at the time of closing (which was a day late thanks to IndyMac) we were in such a rush that we didn't read that contract as thoroughly as we had read the preliminary contract.
without going into further detail, i just want to know how much recourse do we have, having signed the closing agreement. can we take either the loan officer or the lender to court? would we have to?
is this too confusing?
 


Ciarraine

Member
hambu said:
What is the name of your state? CA
hello, thanks for listening.
it has been two months since closing on our house and we've recieved the first official mortgage bill--it was quite different from what we expected. we asked our loan officer (who is in atlanta, GA) about it, and he agreed that it wasn't the loan he had sold us. we talked to the lender (IndyMac) and they disagreed.
we then searched our files and found the preliminary loan agreement (HUD1?) and the closing loan papers. to our surprise, they were, in fact, different from each other. at the time of closing (which was a day late thanks to IndyMac) we were in such a rush that we didn't read that contract as thoroughly as we had read the preliminary contract.
without going into further detail, i just want to know how much recourse do we have, having signed the closing agreement. can we take either the loan officer or the lender to court? would we have to?
is this too confusing?
The HUD1 is not a preliminary loan agreement, it is the direction of settlement funds.

What is different about the loan you now have with IndyMac and the loan you believed you were sold? What, if anything, is different about the loan closing package and the current bill.

Being in a huge rush that you don't bother to read your most expensive purchase to date is not very smart.
 

hambu

Junior Member
The loan that was offered to us by our mortgage broker was an option-ARM based on the Monthly Treasury Average (MTA) with three monthly payment options:
--a minimum payment fixed for 5 years,
--an interest only payment fixed at 5% for 1 year, and
--a 30-year-amortization payment fixed at 5% for 1 year.
The monthly fluctuations of the index would be averaged over the year and recast into the payments for the following year with the margin fixed at 2.3%.

The documents we signed at closing states that the minimum payment is fixed for 5 years, and that the interest rate for the loan changes monthly with the margin fixed at 3.1%. It says nothing of the structure for the interest-only and full-amortization payments.

Because the final loan documents were delayed and finally arrived on the day we were supposed to close escrow (causing the actual close of escrow to be a day later than scheduled), we had no choice but to sign the final loan doc, even though we were surprised by how different some of the terms of the loan were in comparison to the terms we had agreed upon with our mortgage broker. We would have lost our deposit and the new house if we did not sign the final loan documents.

We have documented e-mail correspondence stating the terms of the loan promised to us by our mortgage broker; we think we have a case of misrepresentation or negligent misrepresentation, and possibly constructive fraud on the part of our mortgage broker.
 

pojo2

Senior Member
hambu said:
The documents we signed at closing states that the minimum payment is fixed for 5 years, and that the interest rate for the loan changes monthly with the margin fixed at 3.1%. It says nothing of the structure for the interest-only and full-amortization payments.

So are you saying the OPTION you chose was not the one you closed on? What do the other two options have to do with anything once one of them is chosen?

we had no choice but to sign the final loan doc,

YES you did have a choice, you could have walked away.

even though we were surprised by how different some of the terms of the loan were in comparison to the terms we had agreed upon with our mortgage broker.

You make contradictory statements, you either knew at closing and by signing agreed to those terms or you were surprised when the first bill came in, which is it?

We have documented e-mail correspondence stating the terms of the loan promised to us by our mortgage broker;

So what are the exact difference in what you got and what you were promised?

we think we have a case of misrepresentation or negligent misrepresentation, and possibly constructive fraud on the part of our mortgage broker.

Without reading your documents and all correspondence it would be difficult for any of us to determine such accusations at this point.

A 300-500 dollar consult with an Atty to read over all your documents BEFORE closing would have prevented all this. He/she would have told you to not sign anything until the discrepancies, if there were any, were corrected.
Good Luck and enjoy the home.
 
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