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

Asked almost 2 years ago - 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?

Attorney answers (3)

  1. Norman Antonio Stiteler

    Contributor Level 15

    Answered . 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... more
  2. Dorothy G Bunce

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . 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!

  3. Megan Elizabeth Zavieh

    Contributor Level 7

    1

    Lawyer agrees

    Answered . 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.

Related Topics

Debt

There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.

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