Posted by Baker10 on October 08, 2004 at 06:35:27:
My heart just went into my throat. We currently have a paper trail at an attorney’s office regarding a problem with New Century and USDA RHS. Read my post if you like regarding “overpayment to usda” Good Luck to you.
Mortgage lending fraud, bait and switch - Posted by Peter
Posted by Peter on October 08, 2004 at 01:47:17:
I recently purchased a condo in Hawaii. I moved back there from CA and used a mortgage broker from Community One Financial Services in San Jose. The broker promised to get me a loan that was interest only, fixed rate for 10 years and a low starting rate of around 4.6%. Throughout the loan process and even in the Truth and Lending statements, I was told that my mortgage payments would remain the same for 10 years, or 119 months and then go up to the max of 12%.
The broker in CA engaged another broker in Hawaii to sign papers with me and on the day of the signing, presented a different loan that as not what I was assured I would be getting from the loan broker in CA. He failed to mention that this loan was NOT the same loan that I was promised and sort of said that we could go thru every page but that would take all day. Even at the signing, the paperwork said that my loan payment would not change for the first 24 months of the loan.
The loan was originated by a company called New Century Mortgage in So Cal. What they did was to immediately increase our payments every month from the first payment. Their explanation was that the loan was fixed to the Libor index and not a FIXED RATE loan as we were told by the original broker in San Jose.
This clearly seems to be a “bait and switch” scheme where we were promised one rate and type of loan, and then switched into another type of loan without being notified at the close of escrow.
What I would like to know is having a Truth in Lending disclosure that is not the loan we got is grounds to sue the mortgage company, the broker, or their rep in Hawaii? What can we ask for in damages? Are punitive damages allowed? One friend even said that we could get their license to do business in Hawaii revoked for these deceptive practices. Is that true?
If anyone knows a good Hawaii real estate fraud attorney out there, I would appreciate a recommendation.