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Court: No fraud in refi to a higher rate

Law of the Land

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Homeowners Patricia Ostolaza-Diaz and Jose Luis Diaz-Goyes had two Bank of America mortgages plus a home equity line of credit, also with Bank of America, on their Virginia home, according to court documents. They reportedly received an unsolicited call from a mortgage broker who claimed he was from Bank of America and could refinance their loans into a lower monthly payment. The broker was working with Countrywide Home Loans and allegedly knew that the new loan arrangement would result in a higher monthly obligation to the homeowners. At closing, homeowners were provided with and signed all the required disclosures and documents, including a truth-in-lending statement that accurately stated the actual post-refinance monthly payment obligations. As time went on, homeowners could not afford the monthly payments and, eventually, foreclosure was instituted on their home. The homeowners filed suit against Countrywide Home Loans, alleging fraud, intentional infliction of emotion...