Can I sue mortgage broker for giving me wrong info?

Mortgage in Ex husbands name but I was awarded the property in divorce. My parents moved in with me to help refinance out of his name and cash out some of my home's $300,000 equity to help my business that's suffered because of my divorce. My home and agricultural business are on the same property.

The mortgage broker I contacted said that they would need to be added to the deed for 6 months before they could start the loan process. I asked her if that was just their company policy and she said "No, it's the law." I added them to the deed and contacted other brokers to see if there were any work arounds to get the money sooner.

After sending them the same info I sent her, they told me "The 6 month seasoning period shouldn't have been an issue under our circumstances.. however, the state of Texas does not allow cash out refinances or home equity loans to ag exempt properties."

If I hadn't added my parents to the deed, I could've just sold them the property for the amount I wanted to cash out. Taking them off the deed will not remedy the situation. I would have to remove my Ag exempt status and PAY 5 YEARS OF BACK PROPERTY TAXES to get the cash out loan. This lady royally screwed me over.

I sent her all the property details and told her the property was ag exempt. I spoke with her on the phone and discussed the details via email. I still have all the emails.

Do I have any recourse at all?


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PiaffePonyTx said:

Do I have any recourse at all?

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Yes, NEVER purchase real estate unless you retain the services of an attorney you trust and have vetted.

Yes, never take legal advice from anyone but YOUR licensed lawyer in the state in which you wish to purchase real estate.

Never agree to do anything a real estate salesperson, or any other entity involved in any real estate purchase or transaction advises without consulting YOUR attorney!.

Do NOT sign any document pertaining to the acquisition or purchase of real property until YOUR attorney has read it, consulted with you about it, and advised you accordingly.

What can you do today about the way you were screwed yesterday?

I suggest you meet with and retain a licensed attorney in YOUR jurisdiction with whom you can discuss your predicament and determine if any legal remedies exist for you.

PiaffePonyTx said:

Do I have any recourse at all?

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No. You acted on legal information that came from a non-lawyer. What you did was akin to to making a personal medical decision based on information from an accounting clerk. In other words, this is on you, not anyone else.

zddoodah said:

No. You acted on legal information that came from a non-lawyer. What you did was akin to to making a personal medical decision based on information from an accounting clerk. In other words, this is on you, not anyone else.

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Mortgage brokers are licensed professionals right? Isn't there an assumption or duty to provide the correct information to their clients? She was so far off base!

I contacted a licensed mortgage broker (recommended by my realtor who handles a lot of agricultural properties) and told the broker my situation, my concerns and what I wanted to accomplish to get my ex husband off the mortgage. She told me with complete confidence what the requirements were. There was no "I think you might have to do xxxxxx" or "I need to research our options further". It was, "you must do x before we do the loan because that's the law." She was totally wrong and now I'm totally screwed because of her.






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A mortgage broker is still not an attorney. Before taking a major step like putting others on the deed, you should have asked for additional legal advice. Waiting until after you acted was too late.

PiaffePonyTx said:

Mortgage brokers are licensed professionals right?

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You didn't identify the state where this happened, but just for the fun of it, I'll assume the answer is yes.

PiaffePonyTx said:

Isn't there an assumption or duty to provide the correct information to their clients?

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You apparently made an assumption, so the answer to that part of this question appears to be yes. As for the "duty" part of the question, I think that's questionable -- especially when we're talking about information about what the law says and the broker is not an attorney. If the broker had given you advice about the best heart medication for you to take, would you have believed her even though she's (presumably) not a doctor?

Real estate brokers do what car salespeople do, or Kirby vacuum salespeople do, attempt to sell you something.

Anytime someone is selling you something, no matter what they call themselves, their first interest is selling.

A real estate broker is a salesperson, but so slick the name is changed to make the fleecing appear more innocent.

A mortgage broker is a salesperson, too.

Whatever someone is selling, you must do your due diligence to avoid being fleeced.

Again, never purchase real estate unless you retain an attorney to review every document related to the sale.

army judge said:

Real estate brokers do what car salespeople do, or Kirby vacuum salespeople do, attempt to sell you something.

Anytime someone is selling you something, no matter what they call themselves, their first interest is selling.

A real estate broker is a salesperson, but so slick the name is changed to make the fleecing appear more innocent.

A mortgage broker is a salesperson, too.

Whatever someone is selling, you must do your due diligence to avoid being fleeced.

Again, never purchase real estate unless you retain an attorney to review every document related to the sale.

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Why would she give me instructions to do something that would completely screw the sale up? If she would've paid attention, she would've made a lot more money off me.



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zddoodah said:

You didn't identify the state where this happened, but just for the fun of it, I'll assume the answer is yes.



You apparently made an assumption, so the answer to that part of this question appears to be yes. As for the "duty" part of the question, I think that's questionable -- especially when we're talking about information about what the law says and the broker is not an attorney. If the broker had given you advice about the best heart medication for you to take, would you have believed her even though she's (presumably) not a doctor?

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Of course she is not a doctor so I would not accept her medical advice. People who hire licensed professionals do so under the assumption that they know the laws and procedures pertaining to their profession. If a licensed contractor remodels a house that is not to code, are they not liable? If licensed inspector approves the work that is not to code are they not both liable? They are expected to know the laws and codes for where they work.. right?


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Mortgage brokers aren't hired to be lawyers, although I'm sure some have law degrees.

I've bought dozens of properties during my years on this planet.

I'm a licensed lawyer in Texas, as well as several other states, the military, and the federal courts.

I've always hired a real estate lawyer to review the contract and other documents.

If I hire a plumber to do work, I don't expect her to know how to repair electrical lines, or do finish carpentry; just because she's a professional tradesperson.

army judge said:

Mortgage brokers aren't hired to be lawyers, although I'm sure some have law degrees.

I've bought dozens of properties during my years on this planet.

I'm a licensed lawyer in Texas, as well as several other states, the military, and the federal courts.

I've always hired a real estate lawyer to review the contract and other documents.

If I hire a plumber to do work, I don't expect her to know how to repair electrical lines, or do finish carpentry; just because she's a professional tradesperson.

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Do you expect the state licensed plumber to know your county's laws and regulations regarding plumbing? Let's say you bought a property to flip and had plumbing work done before you sold the house 6 months later. The inspector finds the work he did was not up to code and didn't file the required permit. Not only did it cost you the sale, it cost you another month's mortgage payment (interest only loan), and a fine for not filing the correct permit. You contact the plumber to make it right and he tells you to take a hike. Could you sue him in small claims court?





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PiaffePonyTx said:

Do you expect the state licensed plumber to know your county's laws and regulations regarding plumbing? Let's say you bought a property to flip and had plumbing work done before you sold the house 6 months later. The inspector finds the work he did was not up to code and didn't file the required permit. Not only did it cost you the sale, it cost you another month's mortgage payment (interest only loan), and a fine for not filing the correct permit. You contact the plumber to make it right and he tells you to take a hike. Could you sue him in small claims court?

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If you allowed the plumber to do work without acquiring a permit, that's on you.

Trust but verify.

Sue the mortgage seller if you wish.

Anyone can sue another at anytime, all it takes is a filing fee and a form or two.