[TlPreston]

We were intending to refinance home and being summoned to small claims (CA) by our ex-broker for "breach of contract:fees already pd. by plaintiff prior to defendents breach of contract".

Here are the facts...

12/04/06-Sign/notarized all docs (incl. 3-day right to cancel)
01/04/07-Called broker asked if I should make Jan. pymt; was told no... loan not funded.
01/13/07-Broker called and said DO NOT make Jan payment at all... loan still not funded.
01/15/07-I started getting calls from current mort co... I made pymts; didn't want bad credit.

That week I started calling around because I was frustrated they had not closed our loan yet... and found that on top of them sitting on our paperwork... they were charging over 4 points in loan orig fees.

I told broker to forget the deal, we would find someone else... it was my understanding (from our new broker) that the docs he had we old... and would have had to been re-drawn anyway... (which still would have given me opportunity to sign new 3-day recission)

1 month later... we are being taken to small claims... I am sure his claim will be that I didn't sign 3-day recission... does he have a legit claim? Its my opinion that he didn't perform... that why I went elsewhere...

Thoughts/comments would be appreciated...

Tracy

[wynelle]

We were intending to refinance home and being summoned to small claims (CA) by our ex-broker for "breach of contract:fees already pd. by plaintiff prior to defendents breach of contract".

Here are the facts....

12/04/06-Sign/notarized all docs (incl. 3-day right to cancel)
01/04/07-Called broker asked if I should make Jan. pymt; was told no...loan not funded.
01/13/07-Broker called and said DO NOT make Jan payment at all....loan still not funded.
01/15/07-I started getting calls from current mort co.....I went ahead and made pymts; didnt want bad credit.

That week I started calling around because I was frustrated they had not closed our loan yet...and found that on top of them sitting on our paperwork...they were charging over 4 points in loan orig fees.

I told broker to forget the deal, we would find someone else....it was my understanding (from our new broker) that the docs he had we old...and would have had to been re-drawn anyway...(which still would have given me opportunity to sign new 3-day recission)

1 month later....we are being taken to small claims.... I am sure his claim will be that I didnt sign 3-day recission.....does he have a legit claim? Its my opinion that he didnt perform.....that why i went elsewhere...

Thoughts/comments would be appreciated....

Tracy

So did they give you a reason why the loan hadn't gone through? Are you a credit risk? Was there an established closing date for the refinancing? A four to six week escrow isn't that unusual.

[Emland]

When was your original closing date?

[TlPreston]

The closing date on the Specific Closing instructions to the Title company stated 12/28/06. Is it true that when docs go over 30 days from signature - they would have had to draw new docs? Or even into a new year? The papers said my first pymt would have been due on 01/25/07... as of 01/22/07 they still had not funded.
Our credit was good enough to get a 6% loan (not the 6.75% they were trying for) and the loan orig fees were 3x less. They also tried to stick us with a pre-payment penalty clause... our new loan doesn't have one.

THanks for the replies! Court tomorrow...

[Emland]

I used to notorize closings on refinances (1999 to 2001) and if the closing got delayed by more than 2 business days then new paperwork had to be drawn up.

The loan broker is suing you for the commission he lost when you went with another loan company. Since he didn't produce the loan in the expected time, I don't see how he has a basis for his claim.

Please update with the results.