Title and law question for refinance cancellation.

[skymarshal]

What is the name of your state? CA

A loan broker came to my home when my wife (who was" on the title with me) was out of state for over two weeks. They presented what later proved to be an outrageously expensive refinance package--disguised as a very low payment ("interest only" where much of the monthly interest ends up accumulating as more loan principle). Thinking I had (and actually told) that I had until a Tuesday to refuse the loan over a weekend during the closing completion process, when I explained that I would be checking with my wife, who has a masters in business and is more astute in these matters, the actual closing happened on a Monday!--legitimately three days after signing. The new loan had "hidden" provisions, well, not really--I signed for it--again, thinking I had time to cancel, so I was encouraged to sign everything quickly (yeah, I know--stupid) during closing, supposedly knowing I had time to cancel). I was told that typically the bank would waive the prepayment penalty, though the bank told us "no way," after the fact. I paid nearly $9,000 as a loan fee plus closing costs. It turns out the bank paid the broker an additional $9,000 or so to broker the deal, partially because of the great prepayment bargain for them.

Here's the kicker: My wife did not sign anything, though she was on the original title and now excluded from the new refied title. The broker somehow got a notary to notorize a fraudulent document with a bogus signature of my wife's giving me full individual title, ostensibly so I could sign everything myself without her. I had absolutely no idea they were pulling this, having been told I could legally complete the closing without her attendance. Naturally, she was and is incensed, had never signed anything of the kind and wants the refinance completely nullified.

What are our options? The owner of the brokerage is scrambling--after being threatened with a lawsuit--to get us another loan and have her name put back on it. We've just seen the new loan she (the owner) proposes. The bank wants $7,300 prepayment to satisfy the first refi. The title company and bank are not at fault themselves, believing the notarized statement was legitimate. It would seem we only have a case against the broker, but since the loan was made based on false statements, we are hoping we may have grounds to somehow have the whole refi cancelled. The broker thinks we will pay over $31,000 extra for a new settlement costs totalling $325,000+--expenses for two loans, when our original payoff was only $302,000+ if we wish a new loan without a prepayment and a slightly lesser interest rate, though this proposed "new loan" is still a variable loan, when we originally wished a conventional non-variable loan in the first place. Obviously, we are not signing this.

Do we have grounds for punitive compensation and/or a decent case? Is there a chance this loan can be dismissed somehow? Thanks in advance for any help.

[JETX]

Originally Posted by skymarshal

What is the name of your state? CA

A loan broker came to my home when my wife (who was" on the title with me) was out of state for over two weeks. They presented what later proved to be an outrageously expensive refinance package--disguised as a very low payment ("interest only" where much of the monthly interest ends up accumulating as more loan principle). Thinking I had (and actually told) that I had until a Tuesday to refuse the loan over a weekend during the closing completion process, when I explained that I would be checking with my wife, who has a masters in business and is more astute in these matters, the actual closing happened on a Monday!--legitimately three days after signing. The new loan had "hidden" provisions, well, not really--I signed for it--again, thinking I had time to cancel, so I was encouraged to sign everything quickly (yeah, I know--stupid) during closing, supposedly knowing I had time to cancel). I was told that typically the bank would waive the prepayment penalty, though the bank told us "no way," after the fact. I paid nearly $9,000 as a loan fee plus closing costs. It turns out the bank paid the broker an additional $9,000 or so to broker the deal, partially because of the great prepayment bargain for them.

Here's the kicker: My wife did not sign anything, though she was on the original title and now excluded from the new refied title. The broker somehow got a notary to notorize a fraudulent document with a bogus signature of my wife's giving me full individual title, ostensibly so I could sign everything myself without her. I had absolutely no idea they were pulling this, having been told I could legally complete the closing without her attendance. Naturally, she was and is incensed, had never signed anything of the kind and wants the refinance completely nullified.

What are our options? The owner of the brokerage is scrambling--after being threatened with a lawsuit--to get us another loan and have her name put back on it. We've just seen the new loan she (the owner) proposes. The bank wants $7,300 prepayment to satisfy the first refi. The title company and bank are not at fault themselves, believing the notarized statement was legitimate. It would seem we only have a case against the broker, but since the loan was made based on false statements, we are hoping we may have grounds to somehow have the whole refi cancelled. The broker thinks we will pay over $31,000 extra for a new settlement costs totalling $325,000+--expenses for two loans, when our original payoff was only $302,000+ if we wish a new loan without a prepayment and a slightly lesser interest rate, though this proposed "new loan" is still a variable loan, when we originally wished a conventional non-variable loan in the first place. Obviously, we are not signing this.

Do we have grounds for punitive compensation and/or a decent case? Is there a chance this loan can be dismissed somehow? Thanks in advance for any help.

Go see a local attorney with all your paperwork. He/she might be able to figure out what your rambling and confusing post is about.

"...What are our options?..."

Refinance. The only ones who did anything wrong, from what I could glean from your very confusing post, is you.

[nextwife]

Originally Posted by seniorjudge

"...What are our options?..."

Refinance. The only ones who did anything wrong, from what I could glean from your very confusing post, is you.

The mortgage broker falsely notarized documents supposedly "signed" by the wife.

Originally Posted by skymarshal

My wife did not sign anything, though she was on the original title and now excluded from the new refied title. The broker somehow got a notary to notorize a fraudulent document with a bogus signature of my wife's giving me full individual title, ostensibly so I could sign everything myself without her. I had absolutely no idea they were pulling this, having been told I could legally complete the closing without her attendance. Naturally, she was and is incensed, had never signed anything of the kind and wants the refinance completely nullified.

If the poster was not aware the mortgage broker was using additional docs (unsigned by him) to complete the loan package, he may indeed have a case against the brokerage. If known to contain falsified docs, the loan is likely NOT salable on the secondary market or acceptable by the funding source, and the loan package may not have been completed for the "investor" who funded the loan. It is entirely possible the mortgage broker may need to "buy back" the loan because it likely did NOT close in accordance with the closing instructions of the investor/funding source.

I have VERY recently seen the FBI become aggressively involved in investigating lending fraud. They have actively pursued such fraud when the actions crossed state lines, as mortgage lending often does. Let's hope our poster had absolutely no knowledge of these additional documents, or he may find himself in deeper doo-doo than just the loan problems.

He needs to consult a RE attorney. Or possibly a criminal attorney.

nexie, I am quite aware that there are vicious predatory lenders.

This post, however, doesn't quite pass the smell test.

[JETX]

Originally Posted by seniorjudge

This post, however, doesn't quite pass the smell test.

I respectfully disagree. I think it smells.... bad!!

Originally Posted by JETX

I respectfully disagree. I think it smells.... bad!!

Well, you're right on that point for sure!