Legal Question in Real Estate Law in California

Refinance Dishonesty

I applied for a refinance and consolidation loan for $865,000.00. The broker reassured me that I was approved for a 6.7% interest loan for 30yrs. After three months he told me not to pay my mortgage and equity loan, as the loan was coming through any day. After 3 months I suddenly got a call from a complete stranger saying that the broker gave my file to this man who was a broker and he could get me a loan. I kept asking the first broker who he was and he did not answer me. Then I received calls from my mortgage company and equity that I was late in payment.

The broker told me he would call again and that

I have a grace period and he would straighten it

out. To put a long story short, he told me he had a

8.7% interest loan and I said no. I wanted to know

who he gave all my financial portfolio to and he said

he was looking out for me so I could get a loan.

I applied somewhere else and I have not paid the

last two months mortgage as it was approved and I

thought I was allowed to do this. Now the mortgage

company wants to start foreclosure. What can I do.

How can I get help. I feel manipulated and used.


Asked on 8/03/01, 5:26 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Refinance Dishonesty

Loan brokers are supposed to be licensed by the California Department of Real Estate and you can call them in Sacramento to initiate a complaint. (916) 227-0770.

In any case whether your broker is flaky or competent you do not have a right or reason to stop making payments on your existing loan until it is paid off through escrow along with the closing on the refinancing loan. The way to stop foreclosure is to bring your payments current. Then find a licensed broker whose reputation and credentials can be verified.

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Answered on 8/06/01, 1:59 pm


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