Posted on: 06th Feb, 2010 03:22 pm
Hello everyone,
I am a Mortgage Broker in Miami, FL and I recently had a client/borrower/buyer who I had been working with for 10 months. We had been thru a lot together, failed short sale after failed short sale. On the last home, it was a go and I had her redisclosed, all signed up, approved, locked, appraisal completed, etc.
Well, the new realtor she had found was very difficult from day one and I could tell she was trying to make me look bad. She was questioning me on rate and costs non stop and in the end was able to steer my client to her in house lender. I even offered my borrower a lower rate, but she had worked to make me look like such the bad girl that my client suddenly stopped returning my calls and emails.
I had a great relationship with my borrower and more time and effort invested in her than any client I ever had before.
My question is: Who could I sue for my Broker Fee?
Can I sue the realtor for: Tourtious Interference of Contract or Coersion?
I really need advice on this matter as I just can not afford to just walk away from 10 months of work without compensation from either my client or the $%^& realtor!
Any educated advice would be greatly appreciated!
Thank you,
Sam
I am a Mortgage Broker in Miami, FL and I recently had a client/borrower/buyer who I had been working with for 10 months. We had been thru a lot together, failed short sale after failed short sale. On the last home, it was a go and I had her redisclosed, all signed up, approved, locked, appraisal completed, etc.
Well, the new realtor she had found was very difficult from day one and I could tell she was trying to make me look bad. She was questioning me on rate and costs non stop and in the end was able to steer my client to her in house lender. I even offered my borrower a lower rate, but she had worked to make me look like such the bad girl that my client suddenly stopped returning my calls and emails.
I had a great relationship with my borrower and more time and effort invested in her than any client I ever had before.
My question is: Who could I sue for my Broker Fee?
Can I sue the realtor for: Tourtious Interference of Contract or Coersion?
I really need advice on this matter as I just can not afford to just walk away from 10 months of work without compensation from either my client or the $%^& realtor!
Any educated advice would be greatly appreciated!
Thank you,
Sam
In order for you to sue her you would have to prove there was some kind of defamation of character. There is no law saying that borrowers have to close with us. Of course it is unethical for this realtor to do this but not illegal unless she ran your name through the dirt to this borrower.
It may cost you more to sue her than it would have made you by closing the loan
It may cost you more to sue her than it would have made you by closing the loan
I am also a lender in south florida and I know how these people can be in our area. No loyalty. Has the loan closed yet?
Yes the loan closed. Any yes, I know there is no law that says they have to close with us? But I have a Mortgage Brokerage Contract and a loan commitment, why even have these contracts signed if they mean nothing?
Bradly, have you ever enforced a contract or taken a realtor to court for such terrible behavior?
Bradly, have you ever enforced a contract or taken a realtor to court for such terrible behavior?
I agree that those contracts should mean something but they are all designed in order to protect the consumer not the mortgage broker. I have heard of instances when there have been lawsuits on commercial deals for theses type of things.
I personally have never sued or enforced anything like this. The most I have ever done was send the borrower an invoice for credit and the application fee. But you can't even charge an application fee any more.
I personally have never sued or enforced anything like this. The most I have ever done was send the borrower an invoice for credit and the application fee. But you can't even charge an application fee any more.
Here is what I would do. I would send a letter or if you know an attorney that wont charge you ask them to send it on their letterhead. I would send the letter stating that you do intend on taking this further for damages. That you are going to report her to FREC. I would submit this letter with a dollar amount to be paid by a certain date or you will start the process. At the very least it will scare them and teach them a lesson.
D@#n Bradley,
That's some good advice! I'm already doing that and sueing the borrower in small claims court. From what I've been told, brokers rarely sue for their fees, but when they do they win almost every time if they have their paperwork in order.
It kills me how everyone loves to turn on the mortgage broker when we are the most honest and caring player in 90% of the deals. We will bend over backwards to make the borrower happy, help them thru all their problems getting a loan only to have them stab us in the back over .125% or a few hundred dollars in the end.
What if we increased our fees every step along the way as the job gets harded and harder LIKE ALMOST EVERY OTHER PROFESSION?
Then there are these low life realtors who constantly try to make us look bad to divert attention away from how much they are making for a job that is not worth the return they are given.
I will file with FREC and all mortgage brokers need to start filing complaints with FREC when a realtor does what this realtor has done to me. She could care less about a single mother with 10 months invested in my client!
Samantha
Never again will I allow a realtor to get awat with such a terrible thing as what she did to me.
That's some good advice! I'm already doing that and sueing the borrower in small claims court. From what I've been told, brokers rarely sue for their fees, but when they do they win almost every time if they have their paperwork in order.
It kills me how everyone loves to turn on the mortgage broker when we are the most honest and caring player in 90% of the deals. We will bend over backwards to make the borrower happy, help them thru all their problems getting a loan only to have them stab us in the back over .125% or a few hundred dollars in the end.
What if we increased our fees every step along the way as the job gets harded and harder LIKE ALMOST EVERY OTHER PROFESSION?
Then there are these low life realtors who constantly try to make us look bad to divert attention away from how much they are making for a job that is not worth the return they are given.
I will file with FREC and all mortgage brokers need to start filing complaints with FREC when a realtor does what this realtor has done to me. She could care less about a single mother with 10 months invested in my client!
Samantha
Never again will I allow a realtor to get awat with such a terrible thing as what she did to me.
I agree its a terrible thing I am a father of a young child myself and to work so hard and pay so much attention to one deal to just get left with nothing in the end is hard to deal with.
But I do believe that you being an honest hard working person will prevail over all of this. We are competition I would guess in this market but maybe there are some loans that I can't do that I could pass on to you.
Is there anything special that you do that others can not? I may be able to help you. I work with a bank and can lend in all 50 states. Let me know if you every need any help. Good Luck to you!
But I do believe that you being an honest hard working person will prevail over all of this. We are competition I would guess in this market but maybe there are some loans that I can't do that I could pass on to you.
Is there anything special that you do that others can not? I may be able to help you. I work with a bank and can lend in all 50 states. Let me know if you every need any help. Good Luck to you!
Thanks Bradley. I am going after this realtor. Have you ever heard of Tortious Interference of Contract? This is the way my attorney says mortgage brokers are sueing realtors who did what this realtor did to me.
Tortious interference, in the common law of tort, occurs when a person intentionally damages the plaintiff's contractual or other business relationships. This tort is broadly divided into two categories, one specific to contractual relationships (irrespective of whether they involve business), and the other specific to business relationships or activities (irrespective of whether they involve a contract).
Tortious interference with contract rights can occur where the tortfeasor convinces a party to breach the contract against the plaintiff, or where the tortfeasor disrupts the ability of one party to perform his obligations under the contract, thereby preventing the plaintiff from receiving the performance promised. The hardcore instance of this tort occurs when one party induces another party to breach a contract with a third party, in circumstances where the first party has no privilege to act as it does and acts with knowledge of the existence of the contract. Such conduct is termed tortious inducement of breach of contract.
Tortious interference, in the common law of tort, occurs when a person intentionally damages the plaintiff's contractual or other business relationships. This tort is broadly divided into two categories, one specific to contractual relationships (irrespective of whether they involve business), and the other specific to business relationships or activities (irrespective of whether they involve a contract).
Tortious interference with contract rights can occur where the tortfeasor convinces a party to breach the contract against the plaintiff, or where the tortfeasor disrupts the ability of one party to perform his obligations under the contract, thereby preventing the plaintiff from receiving the performance promised. The hardcore instance of this tort occurs when one party induces another party to breach a contract with a third party, in circumstances where the first party has no privilege to act as it does and acts with knowledge of the existence of the contract. Such conduct is termed tortious inducement of breach of contract.
That sounds good. Go for it and let me know how it works out. you can probably get my email from the profile because I dont think it lets me post it here or you would have to send me a private message so I can give it to you. I hope you get your money!
very interesting thread here...i'm sure it's happened to all of us, even when we might not know of it. i was going to suggest contacting NAR, but i'm assuming that FREC is some sort of realtor organization also.
i wish you well in your efforts to retrieve some sort of compensation.
i wish you well in your efforts to retrieve some sort of compensation.
FREC is the Florida Real Estate Commision. Thats who you need to talk to in this state. I am actually in a dispute right now regarding a property that I was buying. The realtor listed the property at 1200 sqft. I put an offer in then when I got the real numbers from the county it was 936 sq ft. So I cancelled the contract and they are trying to keep my deposit.
that sounds like something that won't be that difficult to tackle, brad. the situation here, however, sounds far more difficult.
yes much more. Its a tough thing to prove in court and could end up costing more than its worth. Hopefully the realtor gets scared about their licsense and takes care of the issue accordingly.
yeah, that would be the stance to take...the more noise you make the greater likelihood there is that the realtor in question will capitulate and make amends.