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Brandon M.
Brandon M., Counselor at Law
Category: Legal
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Experience:  Attorney experienced in numerous areas of law.
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I paid $2300 June 10, 2009 to DMR for a loan mod program. I

Customer Question

I paid $2300 June 10, 2009 to DMR for a loan mod program. "I did not need to make my June mortgage pymt at that time." "I would not be in default, any missed payments would be taken care of during the process." Faxed all info requested 6/19. DMR did not file the papers with my bank until 9/22/09. I am 3 months in default due to their failure to provide prompt service. I requested my $$ back 9/09, (not rec'd.) DMR to keep $250. My mortgage is in default because of DMR. Can I make them pay the 3 months late pymts? I rec'd a cancellation letter from DMR with an error which said "I accept a refund of $20455.00 from DMR..." Had I signed & notarized that letter would they have had to pay me $20455? Is their any way I can recover from my encounter with DMR?
Submitted: 6 years ago.
Category: Legal
Expert:  Brandon M. replied 6 years ago.



how much did you pay to DMR in total? Was it just the $2,300?

Customer: replied 6 years ago.
Yes. $2300 is the total amount I have paid to DMR.
My mortgage company is now demanding I pay 3 payments in order to become current with my mortgage.
Expert:  Brandon M. replied 6 years ago.

Hello again:

I obviously cannot see what you have signed with DMR and what their terms and conditions were, so I am going to operate under the assumption that the contract with them was legally enforceable and that you had a contractual reason to believe that there was, in fact, no need to make further payments to your mortgage company at the time.


Operating under those assumptions, you would ordinarily be able to recover the amount that you gave to them in its entirety, plus for any damage to your credit, plus any savings or financial benefit that you would have enjoyed under the contract; this would be executed under a legal theory of "breach of contract" and "detrimental reliance". Enforcement would be through the civil courts; if the amount to enforce is $7,500 or less, it could be handled in small claims.


With regard to the refund of $20,455, they might have sent the money to you if you signed, but you would ultimately have had to return to them any amount in excess of what they actually owed to you. It would be a mistake, not a gift, and the courts would not reward you for taking advantage of that.


There are a lot of scams floating around out there right now; I would also recommend that you report their actions to the state attorney general's office to let them know that you may have been defrauded in a remortgaging scheme.


Let me know if I may be of further assistance. Thank you.

Brandon M. and 12 other Legal Specialists are ready to help you
Customer: replied 6 years ago.
I read the contract I signed with DMR and it says:

ARBITRATION: Any controversy or claim arising out of or relating to this agreement, or the breach thereof, shall be settled by arbitration pursuant to the rules of the American Arbitration Assoc., and judgement upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof.
and....what about this?
CHOICE OF LAW: Any disputes over this agreement are to be governed by Arizona law.

I believe I am delinquent with my mortgage $5200.00 at this time. I just need to file a small claim case?
Expert:  Brandon M. replied 6 years ago.
An arbitration clause is normally enforceable, and you are most likely bound by its terms. I personally have no problem with arbitration; it is a bit more loosey-goosey than court, but that tends to make the process easier for non-attorneys. I would start by contacting your county bar association to see if they can refer you to an arbitration service. Nothing that you told me changes my opinion of the law, just how you would approach enforcement.
Customer: replied 6 years ago.
What's arbitration and is there any major differences between Arizona law & California Law?

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