skymarshal
Junior Member
What is the name of your state? CA
A loan broker came to my home when my wife (who was" on the title with me) was out of state for over two weeks. They presented what later proved to be an outrageously expensive refinance package--disguised as a very low payment ("interest only" where much of the monthly interest ends up accumulating as more loan principle). Thinking I had (and actually told) that I had until a Tuesday to refuse the loan over a weekend during the closing completion process, when I explained that I would be checking with my wife, who has a masters in business and is more astute in these matters, the actual closing happened on a Monday!--legitimately three days after signing. The new loan had "hidden" provisions, well, not really--I signed for it--again, thinking I had time to cancel, so I was encouraged to sign everything quickly (yeah, I know--stupid) during closing, supposedly knowing I had time to cancel). I was told that typically the bank would waive the prepayment penalty, though the bank told us "no way," after the fact. I paid nearly $9,000 as a loan fee plus closing costs. It turns out the bank paid the broker an additional $9,000 or so to broker the deal, partially because of the great prepayment bargain for them.
Here's the kicker: My wife did not sign anything, though she was on the original title and now excluded from the new refied title. The broker somehow got a notary to notorize a fraudulent document with a bogus signature of my wife's giving me full individual title, ostensibly so I could sign everything myself without her. I had absolutely no idea they were pulling this, having been told I could legally complete the closing without her attendance. Naturally, she was and is incensed, had never signed anything of the kind and wants the refinance completely nullified.
What are our options? The owner of the brokerage is scrambling--after being threatened with a lawsuit--to get us another loan and have her name put back on it. We've just seen the new loan she (the owner) proposes. The bank wants $7,300 prepayment to satisfy the first refi. The title company and bank are not at fault themselves, believing the notarized statement was legitimate. It would seem we only have a case against the broker, but since the loan was made based on false statements, we are hoping we may have grounds to somehow have the whole refi cancelled. The broker thinks we will pay over $31,000 extra for a new settlement costs totalling $325,000+--expenses for two loans, when our original payoff was only $302,000+ if we wish a new loan without a prepayment and a slightly lesser interest rate, though this proposed "new loan" is still a variable loan, when we originally wished a conventional non-variable loan in the first place. Obviously, we are not signing this.
Do we have grounds for punitive compensation and/or a decent case? Is there a chance this loan can be dismissed somehow? Thanks in advance for any help.
A loan broker came to my home when my wife (who was" on the title with me) was out of state for over two weeks. They presented what later proved to be an outrageously expensive refinance package--disguised as a very low payment ("interest only" where much of the monthly interest ends up accumulating as more loan principle). Thinking I had (and actually told) that I had until a Tuesday to refuse the loan over a weekend during the closing completion process, when I explained that I would be checking with my wife, who has a masters in business and is more astute in these matters, the actual closing happened on a Monday!--legitimately three days after signing. The new loan had "hidden" provisions, well, not really--I signed for it--again, thinking I had time to cancel, so I was encouraged to sign everything quickly (yeah, I know--stupid) during closing, supposedly knowing I had time to cancel). I was told that typically the bank would waive the prepayment penalty, though the bank told us "no way," after the fact. I paid nearly $9,000 as a loan fee plus closing costs. It turns out the bank paid the broker an additional $9,000 or so to broker the deal, partially because of the great prepayment bargain for them.
Here's the kicker: My wife did not sign anything, though she was on the original title and now excluded from the new refied title. The broker somehow got a notary to notorize a fraudulent document with a bogus signature of my wife's giving me full individual title, ostensibly so I could sign everything myself without her. I had absolutely no idea they were pulling this, having been told I could legally complete the closing without her attendance. Naturally, she was and is incensed, had never signed anything of the kind and wants the refinance completely nullified.
What are our options? The owner of the brokerage is scrambling--after being threatened with a lawsuit--to get us another loan and have her name put back on it. We've just seen the new loan she (the owner) proposes. The bank wants $7,300 prepayment to satisfy the first refi. The title company and bank are not at fault themselves, believing the notarized statement was legitimate. It would seem we only have a case against the broker, but since the loan was made based on false statements, we are hoping we may have grounds to somehow have the whole refi cancelled. The broker thinks we will pay over $31,000 extra for a new settlement costs totalling $325,000+--expenses for two loans, when our original payoff was only $302,000+ if we wish a new loan without a prepayment and a slightly lesser interest rate, though this proposed "new loan" is still a variable loan, when we originally wished a conventional non-variable loan in the first place. Obviously, we are not signing this.
Do we have grounds for punitive compensation and/or a decent case? Is there a chance this loan can be dismissed somehow? Thanks in advance for any help.
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