What can be done if I put down earnest money but only at the closing found out that I was given a variable instead of fixed rate?

Get Legal Help Today

 Secured with SHA-256 Encryption

What can be done if I put down earnest money but only at the closing found out that I was given a variable instead of fixed rate?

I put earnest money down for a property. I never received my notice of disclosures and found out about the interest rate, which is variable, the day of closing. I specifically told the lender only fixed rates. Do I have any recourse since I didn’t know the information ahead of time.

Asked on May 26, 2017 under Real Estate Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

As to the property or the seller, you have no recourse: you contracted to buy the property, and any issues you have with the lender are not the seller's issues, and legally, the seller does not have to take cognizance of them. The seller--and the contract with the seller--does not care about whether you had the type of loan you wanted or not. If you fail(ed) to go through with the purchase, the seller could successfully sue you.
As to the lender, if you gave them written instructions or directions as to the type of loan you wanted, including in the application, you should be able to force them to change the loan to a fixed rate: not following your instructions could be breach of contract, and/or lying to you about what they would provide may be fraud. Either would provide a basis to take legal action (e.g. sue) against them.
If you did not provide written directions or instructions, however, you would be very unlikely to prevail in a legal action. Your best bet would likely be to pay until you can refinance, etc. the loan to a better one for you.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption