How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask MShore Your Own Question

MShore
MShore, Attorney
Category: Legal
Satisfied Customers: 25285
Experience:  Negotiate, Draft, and Review many complex commercial agreements each year.
17924466
Type Your Legal Question Here...
MShore is online now
A new question is answered every 9 seconds

LOX Letter of explanation for refinancing and cash out reason. If

Resolved Question:

LOX Letter of explanation for refinancing and cash out reason. If I write a letter of explanation after asking my mortgage broker for advice, is the Content legal binding? That means if I change my mind what I want to do with the Cash out money or if I didn't mention everything that I want to buy with this money can the mortgage lender sue me or threaten me for lying (because I followed the mortgage brokers advice and just wrote some standard explanations) with legal consequences? Thxxxxxxxxxx
Submitted: 3 years ago.
Category: Legal
Expert:  MShore replied 3 years ago.
Thank you for the post, if you do not mention what you are taking the money out for, the lender cannot pursue you for lying, but if you represent that the money will be used for a specific purpose and it is not used for that purpose (e.g. home improvement) then you could be pursued for obtaining the loan under false pretenses. As a practical matter, upon learning that the loan was taken out under false pretenses, the lender is most likely to simply "call the loan" (demand full repayment).
Customer: replied 3 years ago.

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?

Thx HFr

 

Expert:  MShore replied 3 years ago.
Thank you for the explanation, no the lender cannot sue you for fraud because you really did not deceive the lender.
MShore, Attorney
Category: Legal
Satisfied Customers: 25285
Experience: Negotiate, Draft, and Review many complex commercial agreements each year.
MShore and 2 other Legal Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19941
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8189
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2132
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    110
    7+ years of experience handling various legal matters.
  • http://ww2.justanswer.com/uploads/PA/PaulmoJD/2013-10-10_195858_JAImage.64x64.jpg Law Educator, Esq.'s Avatar

    Law Educator, Esq.

    Attorney

    Satisfied Customers:

    31621
    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    15975
    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
 
 
 

Related Legal Questions