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Bait and Switch from Lender

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GinaL77

Junior Member
What is the name of your state (only U.S. law)? California



Recently we decided on one of three mortgage lenders. We did not go with the lowest cost. In our loan estimate we estimated we would be at 58% Loan to value after the appraisal, the appraisal was a little low (the lender chose and I felt he used low comps) however after the appraisal our loan would sit at 62% loan to value. I got a call from a "sales person" at the company stating we needed to pay more in either interest rate or in closing cost because our LTV was 62% vs 60%. Funny thing being one other the other companies we looked at had our loan estimated at 64% LTV and the costs were even less than the company we chose. All leaders told us we could go up to 80% LTV and never were additional costs mentioned. He also told me if I try to take my file somewhere else my credit score will be lower and we are already close to the cut off. We are doing a cash out refi. I suggested we would just reduce the amount of the cash out in order to be at 60%, which he replied ummmmm ok. I told him I would call him tomorrow.

I called our loan agent after this and he apologized up and down and said he would waive his commission to get us the deal we originally signed for.

I feel like reporting this company to HUD. And I want to sue them for ALL my closing costs. Does anyone think this sounds like fraud to get more money out of us?

Anyone know a lawyer?

Gina
 


FlyingRon

Senior Member
You're dreaming. First off, these things are disclaimed all over the place that nothing is guaranteed until the actual appraisals, etc... are done. You don't appear to have any quibble with the appraisal as apparently other banks gave you a similar estimate of the property value. So your sole "cause" of action is that they estimated your property value too high. You're going to have to prove that this was intentional and you're going to have a hard time with that.

Even if you were to prevail, you wouldn't get "all your closing costs." All you'd get is your actual damage which I susepct isn't much.
 

GinaL77

Junior Member
You're dreaming. First off, these things are disclaimed all over the place that nothing is guaranteed until the actual appraisals, etc... are done. You don't appear to have any quibble with the appraisal as apparently other banks gave you a similar estimate of the property value. So your sole "cause" of action is that they estimated your property value too high. You're going to have to prove that this was intentional and you're going to have a hard time with that.

Even if you were to prevail, you wouldn't get "all your closing costs." All you'd get is your actual damage which I susepct isn't much.



So, they don't have to disclose that the price goes up if the LTV isn't what they estimated? All three told us we could borrow up to 80% LTV with no mention of additional cost or points. The sales guy says it's a riskier loan at 62% vs 60%. That's crazy!
 

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