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Bryan Hart Booth

Bryan Booth’s Answers

1 total

  • Do the terms of a HUD-1 statement control over the terms of a note?

    I purchased a home new from a builder 18 months ago . I financed the home with a lender wholly owned or related to the builder . I have a HUD - 1 statement that indicates the loan is for 30 years . The HUD - 1 asks " Does your loan have a ba...

    Bryan’s Answer

    Usually, the HUD-1 Settlement Statement does not show the terms of the loan but shows the cash inflows and outflows from the transaction. Perhaps you were referring to a Truth In Lending or other disclosure relating to the loan. Generally speaking, the terms of the note and trust deed (mortgage) you signed would control. That would especially be true if the blanks on the HUD form were not filled in. If someone (the lender, the seller, the title company) told you that you were getting a 30-year loan but the documents you signed were only for 18 months, you may have a claim for misrepresentation or fraud. But the law also assumes that you actually read and understand the documents that you sign, including the note and the trust deed. It is an uphill battle to convince a court to change or ignore the terms of a document that you agreed to and signed.

    It is always better to address an issue with a promissory note before it is in default, so I recommend that you speak to an attorney well before the April 1, 2013 deadline.

    Of course, in order to provide a complete answer, I would need to review the documents at issue and get a full explanation of what was represented to you and what actually happened.

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