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Is it ethical for GMAC mortgage co to increase the already agreed upon interest rate at the last minute during a closing?

Erie, PA |

My ex wife and I were at the closing for our home in Dec of 1998 and as we signing papers my atty told me that GMAC was holding up because they want 2 1/2 more percent to our mortgage. We reluctantly agreed, increasing our mortage by 200 per month, that move doomed up to fail. Any legal help in this case?

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Attorney answers 3

Posted

Ethics and the right to a legal remedy are two different things. Unfortunately, until you sign papers, you have no legal agreement. However, you may wish to take all your paperwork to a local real estate attorney to review for any loopholes. Hope this perspective helps!

Posted

I would definitely take your paperwork and consult a local real estate attorney. You don't have an agreement until the papers are signed, but there are consumer protection laws that guard against a lender doing a bait and switch at the last moment. Also, such an action may not give rise to a legal remedy but may give you good standing or negotiating a favorable resolution of whatever is currently happening.

Posted

The hardest thing to do is to walk away from a deal taht you want which has suddenly turned bad. What they did was change a term at the last second that had a large impact on you, your best course of action was to walk out, they would have either come back or not, but you would not have been stuck with a bad deal.

I am licensed in New Mexico and Pennsylvania, and therefore any discussion of issues related to other states must considered within that context. In addition, my comments are not intended to create a legal representation but merely to respond to the limited facts presented by the question. Any opinion herein is not meant as a precise statement of legal rights or as a recommendation of any particular course of action. A more complete legal review can be obtained through local counsel.

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