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P. Simmons
P. Simmons, Lawyer
Category: Real Estate Law
Satisfied Customers: 33069
Experience:  12+ yrs. of experience including real estate law.
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Can I sue my Mortgage Company me a Home Equity loan on a

Customer Question

Can I sue my Mortgage Company for selling me a Home Equity loan on a house that never had any equity?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  P. Simmons replied 1 year ago.

My name is***** have over 16 years experience in the law. Should you like to chat on the phone I am happy to for a nominal cost. Let me know at any time during our question and answer session if you are interested I am happy to give you more details.

I am sorry for this dilemma...was there not an appraisal done at the time of the loan?

Customer: replied 1 year ago.
It was a new construction home. I was sold the loan to help avoid PMI. Many mortgages like this were done when I purchased the home September 2007.
Expert:  P. Simmons replied 1 year ago.

THank you
So is there evidence that the home was overvalued?

Customer: replied 1 year ago.
At that time, the market was at its peak. Don't think I could characterize as being overly valued, but I have struggled with this for so long the thought occurred to me that how could they have sold me that when there was and never has been any equity in the home.
Expert:  P. Simmons replied 1 year ago.

Thank you

You have an uphill battle to try and sue the lender. You would have to prove the lender was aware the home was worth more than the loan value. You would have the burden to prove this...so unless there was some documentation that the lender knew the home was not worth the loan value it would not be possible to sue and win

Please let me know if you have more questions. I am happy to help if I can. Otherwise, please rate the answer so I may get credit for my work.