Mortgage Refinance Agreement Turns Into Contract Dispute
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Tuesday, September 22, 2015.
Contracts can be rather technical in nature when it comes to doing business. This is especially true when it comes to contracts related to real estate transactions and mortgages in California. These types of contracts can come with various deadlines and formalities that must be adhered to by the parties to a contract. Failure to do so can result in significant legal problems stemming from a contract dispute.
One banking institution and a lending firm are now facing this type of issue after a borrower filed a lawsuit in late July against the two companies. The complaint names JLB Corporation, the lending company, and Wells Fargo Bank as defendants in the lawsuit. The dispute revolves around a contract that was formed between the plaintiff and defendants in early June.
The plaintiff was looking to obtain refinancing for his mortgage at the time. After entering into the agreement to refinance his mortgage, the man received a form from JLB. The form notified the man of the man's right to rescind the newly formed refinance agreement. The notice gave him three business days to do so with a mailing deadline of midnight on a specified date in early June.
The man claims that he had signed the notice and placed it into the mail for collection before the deadline. The plaintiff claims that personnel working for JLB admitted to him that they had received the rescission notice. However, the JLB personnel stated that they had already finished paying off his old mortgage, and, therefore, it was too late to rescind the contract.
The plaintiff is now asking the court to order the amount the lender used to pay off the old mortgage to be deemed a gift. This can result in serious financial consequences for the defendant corporations if the plaintiff prevails in the lawsuit. However, just like with any contract dispute in California, the defendants will also have the opportunity to present their side of the case in court.
Source: pennrecord.com, "Homeowner sues lender, alleging unfair trade practices, breach of contract", Sept. 20, 2015