Migliaccio & Rathod LLP is investigating whether homeowners with home equity investment agreements were improperly charged settlement fees, received inaccurate payoff calculations, or experienced delays in obtaining lien releases after satisfying their agreements.
Home equity investment providers, including Point, Splitero, Hometap, Unlock, and others, offer homeowners access to money in exchange for a contractual interest in their property’s future value or appreciation.
When homeowners sell their properties, refinance their mortgages, or otherwise settle these agreements, they generally must obtain a payoff statement identifying the amount required to satisfy the investment.
The settlement process may involve property appraisals, processing charges, administrative fees, and the release of recorded liens or other property interests.
Migliaccio & Rathod is investigating whether providers or their servicers have imposed fees not authorized by the governing agreements, miscalculated settlement amounts, or failed to provide timely payoff documentation and lien releases.
These issues can be particularly costly during real estate transactions. An inaccurate payoff statement or delayed lien release may interfere with a scheduled closing, potentially resulting in additional interest, financing expenses, or other financial losses.
Homeowners May Have Experienced:
- Being charged unexpected payoff processing, administrative, or valuation fees;
- Paying settlement fees not authorized by their agreements;
- Receiving payoff statements containing incorrect valuations or calculations;
- Being charged multiple times for the same settlement-related service;
- Experiencing delays obtaining payoff statements or lien releases; or
- Incurring additional closing expenses or refinancing costs because of servicing errors.
Potential Claims May Include:
- Unauthorized settlement or processing fees;
- Improper payoff calculations;
- Breach of contract;
- Unfair or deceptive trade practices;
- Improper lien-release practices; or
- Violations of applicable consumer-financing laws.
Signs You May Be Affected:
- You entered into a home equity investment agreement with Point, Splitero, Hometap, Unlock, or another provider;
- You were charged unexpected fees when settling your agreement;
- Your payoff calculation differed from the requirements of your contract;
- You experienced delays obtaining a payoff statement or lien release;
- You incurred additional expenses or lost a refinancing opportunity because of a servicing issue; or
- You have payoff statements, settlement records, or correspondence documenting the problem.
If you have encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call.