Screwed by our broker...

[hindsight2020]

Originally Posted by illuciddreams

sit back...relax..and get cozy. this might be a little lengthy..

So. My mom decided in June of 2007 to refinance her loan...she was in an adjustable....and the way the market was, her payments were flying sky high in no time...I worked at a title company...and used a broker (who I thought was a friend of mine) from across the hall to help us structure the loan to fit her needs....She was supposed to have a 270 loan fixed at 7% for the life of the loan...(keep in mind..she had a 690 credit score in all this)...Final numbers were supposed to come to $1260/mnth including her escrows.

closing day came...and we signed page by page...TRUSTING that the information on the papers was the same as the prelim docs drawn up...needless to say. the first statement came from Countrywide and her payments were 1580 with escrows. We called immediately...and went through the paperwork again only to realize we had been screwed. Her interest was 9.75 and he put her in a jumbo.

Now. with this said...we went back and forth with the broker for a good 2 months about this. he swore it was countrywide who made the error...and well, now? Now he's nowhere to be found...He told us we could restructure the loan after 6 mnths of payments...so we did that..we're on month 8 now..and still nothing. Countrywide wont help us to fix the problem...and I'm not sure where to turn at this point...foreclosure or sale is the only option...both of which im not too intrigued over...

If anyone can help or knows anyone who could, I would REALLY appreciate it. I feel aweful that my mom has worked so hard her entire life just to own her home..and because I trusted a coworker...she may lose it.

thank in advance

Lexi

"The dog ate my homework?"....wow, and I thought I was just a risk-averse renter because I don't like being house poor...you folks don't even read what you sign. I'm speechless that this happens among adults....wow.

[Bette]

First of all, in Florida, there is a 3 day right of rescission. When you close and sign, you should be given documents that you signed so you can read at your leisure during the 3 days. That's what its for.

At $270,000, it is not a jumbo loan but he probably put her into a "non-conforming" product where the rates are higher.

The rates you got sound like subprime rates, especially for a 690 score.

I do not know where your $1200 payment was coming from - even with a portion of this loan interest only at 7% ($270,000), payment would be $1575.00.

Something doesn't sound right.

When I do closings and I do go to all of mine, I instruct the borrower to please read the documents when they get home (if a refi) - and if it's a purchase, the attorney or title agent really appreciates me being there for any questions.

What's the value now?