I did not get/receive/close the loan but the lender mentioned that he will threatening me with going to court and sue me for his expense that he had for working on my loan application for nothing because of my "false" explanation in my LOX?
As a matter of fact I think I was not lying because I wrote in the LOX:
The reasons why we apply for cash out money are:
- To pay back our debts on our credit cards
- make home improvements
- to deposit some money on our savings account
With best regards XXXXX XXXXX
We were planning to do all this payments but with the line item "- home improvements" I was planning to improve the rental income home that I was planning to buy cash with separate money that I got finally from my family.
In the beginning of the 3 months loan process I was planning to take the refi cash money out ONLY for buying the rental property (and mentioned this to the mortgage broker) but this purpoes changed when my family participated on this investment.
That means I did not lie, I just didn't explain this issue in detail and I never wrote that this line items include everything that we were planning to do with this money because I didn't know it for sure at the time when I wrote and signed the LOX.
Can the lender now sue me and my wife for lying (because he said we committed a fraud/crime in a loan document with a false LOX) and force me to pay for his time that he invested to work on our loan application?