How to stop a bad refi deal in progress?

[jb4872]

What is the name of your state?What is the name of your state? California

I am looking for a way to stop a bad refinance deal my mom got herself into.
She and my sister the genius went to some scam artist brokers (acquaintances)
and struck a deal with 7% on the loan and over $6,000 in points for the brokers.

She could have gone to the local bank and got 5% and no points charged.

It is past the 3 days right of rescission but there might be a loophole to get out.
She never took any of the paperwork to be reviewed by a lawyer.
They just had her sign everything put in front of her without time to look it over.

They even recorded the deal so they can pay off the current mortgage holders before
she could figure out she was being taken to the cleaners.

They knew there was a lien on the house from a forgotten debt of mine before ink hit paper
but went ahead and shoved the deal down her throat.

I learned of it when she had me sign a quit claim on the title. She put me on the deed
in 96 just in case something ever happened to her.

I don't know how to get her out of this mess. I'll have to satisfy the collection agency/lien holders
before anything goes forward. With a refi hanging overhead they don't have to settle for less.

I'd like to stop the crumby refi then deal with the lien. Then walk her to a proper bank to do business.

Thanks for reading this. Suggestions and flames welcome.

 

[amortgageman]

Very confusing post.

In one sentence, you claim the 3 day right of recission has passed, but in another sentence you say that you will have to satisfy collection agency/ lien issues before the loan can close??

Has the loan closed or not?

 

[nextwife]

They knew there was a lien on the house from a forgotten debt of mine before ink hit paper
but went ahead and shoved the deal down her throat.

I learned of it when she had me sign a quit claim on the title. She put me on the deed
in 96 just in case something ever happened to her.

YOU are on title? Or were you the sole party on title?

Hope you didn't sign the QC! If you are on title, they cannot refinance the debt without you agreeing to it.


Additionally. your preexisting debt now is in priority position in front of this loan.

Call your state consumer protection office. Get an attorney. Sounds very strange that they'd pay off a mortgage to refi with a party that was not in title. And ignore liens against the place.

 

[jb4872]

In one sentence, you claim the 3 day right of recission has passed, but in another sentence you say that
you will have to satisfy collection agency/ lien issues before the loan can close??
Has the loan closed or not?

The 3 day right of rescission has passed on stopping the loan as per wording on contract.
Escrow can't pay anyone until said lien is cleared. In the meantime we signed an Indemnity Agreement .
The payout is on hold until lien clears. I don't know if this means the loan has officially closed.
Sister said it is standard procedure. I think it was a way to lock us in so we can't back out of said loan.
She is more naive than I thought and should not have trusted her direction.

YOU are on title? Or were you the sole party on title?
Hope you didn't sign the QC! If you are on title, they cannot refinance the debt without you agreeing to it.

I was on title 50/50 with mother. I did sign a QC so mom could get the loan in her name.
I was being pressured by all parties involved to just go along with the program.
Now I feel I should have gone with my instincts and show all papers to a pro first.

Thanks for the replies which give me some ideas. I am calling around for some professional advice.

Here is the original post with more detail.