[ENTER NAME]
[ENTER ADDRESS]
[ENTER DATE]
Rocket-Amrock Mortgage and Appraisal Company
[ENTER RECIPIENT’S ADDRESS]
Re: Demand for Compensation for your illegal conduct
Dear:
This letter serves as a formal Complaint and demand for redress for the losses, damage and/or
harm that I suffered consequential and incidental to your illegal lending practices. It also serves
as a notification of my intention to pursue further action permitted by law in the event you fail to
respond to the demand(s) herein. We believe the demand(s) are reasonable and that they are fair
and just.
Factual Background
The subject matter of this Demand letter began in January, when I decided to purchase a home
since I intend to return home from China where I have been living. My diligent attempts to
search for different and/or favorable mortgage lending options led me to your company.
After I found the property that I loved, your company counseled me to apply for an FHA loan.
Notably, a FHA loan requires 3.5% down payment, and requires that the appraisal meet certain
FHA loan standards. I was therefore assured that the loan was appropriate for my financial
situation. At that time, I had shared the entirety of my financial statements for the previous two
years, complete employment history, tax returns, and a lot of additional very personal private
information, including distressing details about my personal life that had happened during
January and February while I was going through the application process.
For the down payment, I had the option to pay the required amount from available funds or any
combination of stocks options 401(k) 401(k) brokerage account and other retirement accounts
established for me by my company. The selling price of the property that I intended to purchase
is $549,222. Interestingly, your company informed me that the said amount is what I would need
to close on the loan, and not the 3.5% that I was earlier informed. I contend that all along your
company’s staff had the clear intention and knowledge that I would not receive the said loan.
You have used a combination of emotional tactics to make me proceed with the loan. You even
got a copy of the home inspection itself showing every detail of repair and stuff the property
needs, and continued to tell me that the FHA was the way to go and I thus needed around
$36,000 cash to close. Further, you have been harassing my employer by making incessant calls
and emails, but did not disclose your full ownership interest in the appraisal company. This is a
departure from what you initially held out, since you sold the loan to me as an “independent
appraisal”. It is further notable that the appraiser stopped the process and did not submit the
appraisal without informing me. To this day, you insist you can close the loan as an FHA loan if
certain “roadblocks” are removed when you well know it will not happen.
In light of the foregoing, your action and/or inaction have subjected me to notable financial
losses. I spent a notable amount of cash, and I am now forced to either lose my home purchase
and my $15,000 deposit or liquidate all my assets. It is further notable that I have found a
legitimate lender and I believe that I will close the loan successfully with around $150,000-
$200,000. However, I might go broke afterwards, since all my equity will be in the new property
and I will be living paycheck to paycheck for quite a while all while in a foreign country.
Your conduct is also bearing a heavy toll on my emotional state. Notably, my job has been put
on the line because you keep harassing my employer. My job is therefore at stake because of
your actions. My partner also left me because of the foregoing.
It is worth noting that I was honest and transparent with you during the business relationship we
had. However, you took advantage of my vulnerability and failed to disclose the said
information, to my detriment.
Possible Cause(s) of action
In the event you fail to rectify your actions and/or inactions pursuant to our demand herein, we
have a strong and valid case against you. In addition to FHA loan fraud and other related claims,
you may be liable for the causes of action including:
i. Unjust enrichment
The elements of a cause of action for unjust enrichment are: (1) plaintiff has conferred a benefit
on the defendant, who has knowledge thereof; (2) defendant voluntarily accepts and retains the
benefit conferred; and (3) the circumstances are such that it would be inequitable for the
defendant to retain the benefit without paying the value thereof to the plaintiff. See Henry M.
Butler Inc. v. Trizec Properties Inc., 524 So. 2d 710 (Fla. 2d DCA 1988). We accidentally sent
you funds for work you had already been paid for.
You misled me to hold on to my assets and prepare cash for the loan. I made a deposit of
$15,000. All this while, you knew that the loan will not go through. Therefore, you
benefited/intend to benefit unjustly from me, and are liable in that regard.
ii. Breach of implied duty of good faith and fair dealing
The implied covenant of good faith exists in virtually all contractual relationships. See Sepe v.
City of Safety Harbor, 761 So. 2d 1182, 1184 (Fla. 2d DCA 2000); see also County of Brevard v.
Miorelli Eng’g, Inc., 703 So. 2d 1049, 1050 (Fla. 1997). It follows; every contract includes an
implied covenant that the parties will perform in good faith. See Restatement (Second) of
Contracts § 205 (1981). This means that every contract imposes upon each party a duty of good
faith and fair dealing in its performance and its enforcement.
In my business relationship with you, you held out as a reputable and professional company.
However, you breached the said duty by failing to make pertinent disclosure, thus leading me to
the said incidental and consequential losses.
DEMANDS
In light of the foregoing, we demand the following:
i. THAT you make compensation by paying me at least what I would not have lost
had you been honest with me and done your work to an appropriate level of
professionalism.
ii. THAT you donate an equal amount to a government sponsored non-profit of my
choosing for housing lending education and assistance. This would help protect
other innocent individuals from the illegal conduct of lending companies.
If you do not comply with this request by [ENTER DATE], I will be forced to pursue legal
action; and seek a judgment. Please note that this legal action would be detrimental to you.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
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