Real Estate Home Mortgages/recent refinance


I refinanced my home last month. It went through escrow and was funded and all my bills were paid including the bank. Now a month after this the company that did this conventional loan,charging me 3500 dollars, called me and wants a paper stating that my workers comp.permanent partial payment( that I receive bi- weekly), will be the same amount for three years or they will undo the whole thing? They say there is a clause somewhere in what I signed that states they are allowed to do this.I told them from the beginning that my workers has no guarantees, that it could stay the same for years or I could go to court in a month and get a settlement. I was completely up front with them and gave them my check stubs for over a year with the date of the start and the amount they pay. They say the people they are trying to sell my loan to want more, a guarantee,what should I do now?  I am in California. I would appreciate any response you may know that would help me. Thank you in
advance for your time.


Hi Sherry,

Here is what must have happened: Your lender approved you for the loan using you Workers Comp as part of the income needed to qualify you. After close of escrow they sold the loan to their secondary market investor, and then discovered that the investor would not buy your loan due to the uncertainty about the length of your Workers Comp payment.

It is possible that your lender doesn't have the financial strength to keep the loan inhouse and not sell it to their investor. Because of that they are asking you to get them the type of document that would satisfy their investor and allow them to sell their loan.

As to their threats: They can rescind (undo) your loan only if there is obvious fraud on your part. As long as you keep on making your monthly payments they can't do much, other than go to court and claim fraud.

As I see it, your lender got itself into a problem due to carelessness, and they now expect you to fix it. Don't let the lender intimidate you, but be aware that at some point you may have to get yourself an attorney.

Best wishes,

About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

Real Estate Home Mortgages

All Answers

Answers by Expert:

Ask Experts


Eric Forster


Did your last mortgage broker or lender trick you into a messy situation which could cost you your home? I've been close to 30 years in the mortgage industry, and I've seen it all. Believe me, it is not pretty. As the owner of a mortgage company I am called frequently to testify as an expert witness in mortgage fraud cases and other cases where lenders did not fully disclose the terms of the loans they were offering to the borrowers. I have seen fraud being committed by borrowers - and by lenders. It's a tough world out there. And by the way - you are invited to visit my website,


More than 25 years in loan production and underwriting in Southern California.

Mortgage Bankers of America (Southern California Chapter)

Former columnist for AOL Financial Center and the author of a mortgage primer.

MBA (Finance)

©2017 All rights reserved.