Hello, we aren’t investors, but have a question for those who have some knowledge of real estate and law.
My parents were recently looking into refinancing their home, but when the person showed up at their home on the day they were signing papers, the terms were not as discussed on the loan papers and they declined to sign.
However, somehow the loan closed anyways. BofA has been working hard to get a new loan for them at the terms they agreed on, but to me it seems like this is not a small issue. It seems like it would be quite a big deal.
Can anyone give me any insight on this situation, what recourse my parents may have, etc?
Jason: I think are probably too many variables and missing information
from your question for you to get a very good answer here. A loan
“closing” without signatures doesn’t usually happen. Not that it didn’t
happen but it’s pretty far out, even in these strange times with lenders.
What is the evidence that the loan “closed”? Is there a recorded
document in the county? Were their earlier loans paid off?
Were your parents refinancing a loan or loans that were already in
place? And if so, was BofA the original lender?
Or were your parents attempting to get cash out by refinancing? And
if so, did they cash the check?
Did your parents have a home equity line already? Was the product
that was being offered a home equity line?
Also, what state are you in? It matters what kind of mortage process is
involved and that varies by state.
Were your parents in default or behind on their mortgage? Are they
involved with any state of federal program to help them keep their
These are just of a few questions, so I’m sure you can see that the
situation may be more complicated than your parents not signing a
loan that closed.
If you can post more info, there are people here with lots of lender
experience who may be able to shed more light on the situation. I’m
curious what process your parents were going through that brought
them to a refinance that closed without their signatures.