kdd a asked:


I went to a mortage broker to get a refinance home loan. He spent hours on getting me a good deal. I signed a bunch of paper with him, but I never finalize the deal. However, I found a much better deal with someone else. I finalized and closed my deal with the new broker. Now, the first broker wants $500 for his time working on my loan and wasting his time. He said that if I don’t pay him, he’ll put a lien on my house. Should i just pay him?

Also Assume this:
(I don’t have and don’t know what I signed)
Even if I signed a contract to agree to pay him $500, aren’t there any protection under California law (DRE) for the barrowers?

http://www.dre.ca.gov/relaw_pdf/Relaw.pdf
page 115-126

I’m not a lawyer and these law books are hard to understand
Thanks for any help

Glen

7 Responses to “Real Estate Loan. Is this legal?”

1. nicolasraage on August 7th, 2009 1:41 pm

   Edwin

   I don’t know the answer to your question. If you don’t get the answer, I would suggest finding and contacting the real estate commission in your area. There is at least one in the state. They take on complaints such as yours, and may be able to answer your question.

   the dre at the link above stands for department of real estate

2. TIFFANY V on August 10th, 2009 5:02 am

   Paula

   No it is not legal. When someone is negociating a loan for you then they dont get paid until the loan is closed. Don’t pay anything.

3. Paul V on August 10th, 2009 5:21 pm

   Louis

   Don’t pay him a dime! Mortgage brokers prequalify poeple all the time for free. If he didn’t charge you anything at your first meeting tell him to go fly a kite!

4. qbanita0113 on August 11th, 2009 11:32 pm

   Harold

   I’m currently going to school to be a mortgage broker in the State of Florida.. That seems kind of unethical, but it depends on which state, and what you signed. If you signed a document agreeing to pay, whether you finalized a loan or not, you’re stuck… Get copies and go over those papers… GOod Luck…

5. Scotty on August 14th, 2009 10:34 am

   Herman

   You should be able to get a free consultation with a lawyer on this…but I don’t believe you owe it. Since you went to a broker, depending on what paperwork you signed, you might owe it. I would call his office and demand him to show you in writing why you owe him the debt and where it says you would pay his costs in the event of non closure, he is required to send you the appropriate documentation showing that you understood that his costs were your responsibility. Make sure you read over everything very carefully.

6. captian random on August 16th, 2009 11:35 pm

   Jimmy

   DO NOT PAY HIM A DIME!!! There is no way for him to put a lien on your home without taking the matter to court, at which point a judge would probably determine that he was trying to screw you over, which is why he will never go to court with it.

7. abqdan on August 18th, 2009 10:21 pm

   Jeanne

   If the broker made it clear fees attached, whether he said this or had you sign something, you are on the hook for the payment. The most he could do though is sue you in small claims court.

   If he didn’t make the fee structure clear at the beginning, then you don’t have an implied or actual contract, so you don’t have to pay.

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