eceptive Mtg Co

[elwood317]

I was contacted by a Mortgage Co, and told that I could be approved for a re-finance at 8.5 %. I swallowed the hook, and the next day, I was told that I was approved and " Locked In @ 8.5 %. The closing was to take place in 2 weeks. We were told that we should NOT make our Oct payment, since the closing would be before the due date.

The due date came and went, and we contacted the broker who told us not to worry, that the loan would close soon. He also said that he would call them and fax them the approval and closing date. The first week in November, we still had no closing date, and we were told not to worry. We complained about the slow service, and were told that our contact with them obligated us until 12/12/99, but it would not take that long to close.

The Mortgage company that we are currently late with have been calling the house and my office every day. The broker had never contacted them. The broker called me today, and told me that he had a new locked in rate, of 9.5 %, because we were 30 days late on out house payment. After being told that we were not to worry.

Can we sue him forr damamging our credit ?

 

[LorettaL]

You need to contact your old lender and detail the sorry state of affairs that you are in because of this new mortgage broker/lender. Make good on your existing mortgage obligations before you start filing a suit against the new party to make sure the old bank doesn't foreclose on you while you are trying to resolve this situation.

I would not be surprised to find out that this second party has a pattern of fraudulently misrepresenting their ability to secure a good locked in fixed rate mortgage. Your best bet is to try and put this broker out of business; I have a feeling that if you and enough people sue them they will just file bankruptcy and you will be out your attorney fees. I would file a complaint with the local Better Business Bureay, contact the local DA and/or state Attorney General's office dealing with consumer fraud, and cc: Fannie Mae and/or Freddie Mae on all correspondence; give as much details about who, what, where, when and copies of any documentation that you may have. Then I would write a letter to TRW or whoever the local credit bureau is explaining exactly what happened. (There's a section in the "credit problems" sectionof this website "bankruptcy" link which sets out what you can do about tring to fix credit problems.) I believe these are concrete steps that you can take to try and repair your good credit standing. Good luck!