First post here, and I'm very new to anything having to do with legal issues.
Last year, my wife and I did a refinance that went terribly wrong. We had an incompetent loan agent who got us stuck in an option ARM loan with a $25,000 origination fee and a $18,000 prepayment penalty. We did sign the papers, so I guess we are legally stuck in the loan (we have since refinanced).
Here's the problem. A few weeks after everything happened, we were able to negotiate a $15,000 refund from the mortgage company. We did not sign anything saying that we released the company from any further liability.
A few months ago, I saw on the Ca. dept. of Corporations website a statement saying that consumers should always file a complaint with the department, regardless of if the claim was settled in another forum. So I went and filed the complaint. Now the mortgage company is planning on suing me for breach of contract. They stated that in the rebuttal letter that they sent to the CDC. They also ignored the issue of the incompetent loan agent and focused on the "we have your signature" part.
My question is: can they sue me for breach of contract? If so, I think the CDC's website is a bit misleading. Also, if I do get sued, what should I do?
Thank you for your help,
Jon
Last year, my wife and I did a refinance that went terribly wrong. We had an incompetent loan agent who got us stuck in an option ARM loan with a $25,000 origination fee and a $18,000 prepayment penalty. We did sign the papers, so I guess we are legally stuck in the loan (we have since refinanced).
Here's the problem. A few weeks after everything happened, we were able to negotiate a $15,000 refund from the mortgage company. We did not sign anything saying that we released the company from any further liability.
A few months ago, I saw on the Ca. dept. of Corporations website a statement saying that consumers should always file a complaint with the department, regardless of if the claim was settled in another forum. So I went and filed the complaint. Now the mortgage company is planning on suing me for breach of contract. They stated that in the rebuttal letter that they sent to the CDC. They also ignored the issue of the incompetent loan agent and focused on the "we have your signature" part.
My question is: can they sue me for breach of contract? If so, I think the CDC's website is a bit misleading. Also, if I do get sued, what should I do?
Thank you for your help,
Jon
