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Home Equity Loan Contracts

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Sandra Weaver

Port Sanilac, Michigan

I received a Home Equity Loan for approximately $46,000.00. The day of the signing, the loan company called to say that during a title search they had found a construction lien on the property. This lien was put on without my knowledge. I immediately called an attorney and made an appointment for the following week. I informed the loan company that I was not willing to sign papers for this loan as I refused to payoff this construction lien, we were now in litigation and I would not pay, as the contractor did not perform the work. The loan company told me they would cut a check in the contractors name, but not send it to him until litigation was over. If the contract won in court, the check would be sent to him, if I won in court, the check would be void and a new check would be written in my name. They assured me they would keep the check in a file until litigation was complete. I agreed. During the signing, everything was very rushed. All the papers were signed and we were sent with an unsigned copy and told we would receive the signed copies in the mail along with the checks in a few days. On the way home, I noticed a mistake on the paper work. They were going to issue a check for approximately $8000.00 to a company that we no longer had an open account with, it had been paid off. I called the loan officer via cell phone on the way home. He said he would take care of it. I received the checks in a few days in the mail, they did not pay out the $8000 to the paid account, they added the $8000 to the check in my name.
They had also not sent the check to the Contractor with the lien on the property. After approximately one month, I received a notice in the mail explaining to me they had sold the loan. I did not have a problem with that, but when they sold the loan they released the check to the Contracor with the lien. I have never receved any signed or updated copies of paper work. Now, instead of going through the process to remove the lien, I have had to retain a lawyer to sue the Contractor to get my money back. My question is, can the loan company be held accountable for releasing this check? Is my loan valid, as I have never received any updated forms or resigned anything with the changed amounts? I have never received any signed documentation at all. I never received any documentation that they would hold the check in the amount of the lien in the file. Is this legal?? Please help with some info. Thank you.

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