Do I have a case to sue a mortgage lender and force them to reduce the loan principal and provide a lower locked in interest loan if I was given the wrong loan?

I was provided a Good Faith Estimate that shows a conventional loan type, yet I was given an ARM loan. was not informed it was a FreddieMac subprime loan, however that is what I have and Freddie Mac doesn’t recognize that I have a loan with them.

Asked on June 22, 2012 under Real Estate Law, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whether or not you have a legal basis to bring an action against your lender for false information for the loan that you ended up receiving would have to be based upon a detailed legal analysis by a real estate attorney after he or she has reviewed all of your loan documentation.

However, from what you have written, there seems to be a factual basis for contacting a representative for your lender to see if the lender would be willing to re-write the terms of your loan into a fixed rate situation.


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