• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Lending Nightmare

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

taz104

Junior Member
What is the name of your state? CA

OK....where to begin...
For the last 2 years, we have been budgeting and paying off debt in order to be financially comfortable w/ a mortgage payment.

In April, we decided to go onto Lending Tree to look for a competitive lending rate for 100% financing. 80/20 loan with 0 down.

Found a lender....end of April. The broker ran our credit and on 4/27 quoted us at 5.375% and 7%.

We were outbid on 2 properties, then on the 3rd we were declined on our bid, contingent of finding a local back-up lender. Our out-of-state broker reassured us that no backup lender was needed. We stuck to our guns, so to speak, and put our trust in him. We soon found another property on 7/5 and put in an offer on 7/6. It was accepted that evening and on 7/8, the broker told me via phone that he locked our rates at 5.675% & 7% and that he was ordering an appraisal.

Conditions of purchase agreement: Final Loan approval by 7/28 and Lift loan contingency by 7/23.

To make a very long story short, our rates seemed to elevate after that. The 11th, I was told that he, in fact, didn't lock them and was unable to find a lender for the 2nd. All said and done, finally came back on 7/14 with 6% and 9.775%, putting the payment out of our budget. During the few days it took him to get back with us, we were advised by a local lender that he could get better rates. Our local lender ran our credit and was able to get 5.5% & 8.5%...much better rate and payment.

The local lender ordered a seperate appraisal and provided us contingent approval on 7/18. We filled the contingencies and he informed us he would provide us with non-contingent loan approval on 7/25, which he delivered.

Lender A delivered contingent loan approval at 3pm on 7/22. THE DAY BEFORE WE WERE TO LIFT OUR CONTINGENCY! One of these being canx'd checks from the bank (which take days to receive).

Needless to say, in a conference call, my wife and I informed him of our decision to go with Lender B. He was obviously ticked off and asked how we wanted to pay for his appraisal. I told him that due to his dishonesty and his inability to meet our agreed upon deadlines, that I didn't feel we were liable for the appraisal. He stated "I'll do what I have to do then" and hung up on us. He proceeded to call our RE agent and threaten that he was filing small claims and that our local lender would see that and deny us our loan. He has since emailed a request for payment. I have requested from him a bill from his company and supporting documents stating that we are liable for the appraisal. He has since been harrassing my wife at work, calling insessently(sp?) and threatening legal action.
Yes, all of this within the same day.

I replied to his email requesting the documents and for all correspondence to be via mail, so that I would have record of this.

He is claiming to file small claims tomorrow. He is also claiming that we will be held responsible for all legal fees and his plane ticket to appear.

QUESTION: Is all of this legal? All I asked for was a bill and supporting documents, as we never signed anything stating we wanted an appraisal and with his bait and switch technique, I don't feel liable for his expense in trying to swindle us. I told him that if he provides us with the documents requested via postal mail, that we will pay for the appraisal.

If he sues, can we countersue for loss of time and aggravation?
This is all so petty, I can't believe we are going through this....

Thanks!
1st Time Home Buyer
 



Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top