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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Legal
Satisfied Customers: 16625
Experience:  Experienced Licensed Attorney
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Bank of America has pulled a "bait and switch" on me for a

Customer Question

Bank of America has pulled a "bait and switch" on me for a mortgage refi. Are there any current class action suits on this? Should I hire a private attorney?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: California
JA: Have you talked to a lawyer yet?
Customer: no
JA: Anything else you think the lawyer should know?
Customer: I got an estimate for a 3.5% for $440 from B of A on July 5. This is what I have been going on in getting the extraordinary amount of documents and time since then with a B of A mortgage person directly involved. I believe the mortgage person messed up, but now he is telling me the best they can do is 3.8. His claim is that the 440 did not include "cash out." I never applied for cash out, but was combining a first and a second equal to 433K. He claims that the second because it was a HELOC is considered cash out. It is no longer a heloc but changed to a regular 20 year loan several year ago. I have been a B of A customer for 34 years with all my accounts with them. Now they are doing this.
Submitted: 11 months ago.
Category: Legal
Expert:  Alex J. Esq. replied 11 months ago.

Hello. My name is Alex.
Thank you for your question.
I will be happy to provide you with information you are seeking for educational purposes only.

Do you have anything in writing from Band of America that guarantees you the 3.5% rate at the closing of the refinancing?

Do you understand that an estimate is not legally binding, but simply that, as estimate or approximation?

Customer: replied 11 months ago.
I have the estimate in writing on official B of A docs. It was mailed to me. I understand that estimate is approximation, but to go from 3.5% to 3.8% after a month of almost daily communication in getting docs together seems extreme.
Expert:  Alex J. Esq. replied 11 months ago.

Thank you for your follow up.

Unfortunately the banks in fact can legally fluctuate from the estimates to the actual interest rate and in some cases such fluctuation can be 1% or more and unfortunately, because even written estimates are not legally binding on the banks, but simply an approximation, there is generally no legal recourse is the actual rate increases prior to the closing and there are currently no class action lawsuits, since there is no legal violation is present under the facts similar to the ones you have described.

I am very sorry to provide you with this bad news, but please understand that I do have professional obligation to provide customers with correct answers, even when answer is not favorable to the customer.

I wish you the best of luck and God bless you!

Expert:  Alex J. Esq. replied 11 months ago.
Expert:  Alex J. Esq. replied 11 months ago.