Ask the Real Estate Lawyer: Real Estate Law Q&A
REM #LAW 695
By Ilyce R. Glink and Samuel J. Tamkin
Summary: A reader has discovered that their
mortgage is not FHA guaranteed. Ilyce and Sam give advice about how to place
a complaint against the lender.
Q: We have been having trouble with our mortgage company and went to the FHA
(article continues below useful links)
Upon doing so, we discovered that although all of our loan paperwork has an
FHA number on it, the mortgage company failed to send in the final paperwork
and we do not have an FHA loan.
Is our mortgage even valid?
A: The short answer is that your loan is valid. It may not be an FHA loan (backed
by the Federal Housing Administration), but you received money to buy the home
and signed a note and mortgage. You still have an obligation to repay the loan.
You don’t mention what your trouble is with your mortgage company and
why you went to FHA for help. You may have some legal options against the lender
for promising to give you an FHA loan, charging you fees that FHA requires but
not giving you and FHA loan. Talk to an attorney further about all of the facts
surrounding how you got the loan and you can decide how to proceed from there.
If this company promised you an FHA loan and did not deliver, you can also
file a complaint with the agency that regulates financial institutions in your
state and with the Department of Housing and Urban Development (HUD).
Samuel J. Tamkin is a Chicago-based real estate attorney. Ilyce
R. Glink’s latest book is 50 Simple Steps You Can Take To Sell Your
Home Faster and For More Money In Any Market. If you have questions for
them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022
or contact them through Ilyce’s website www.thinkglink.com