“We’re trying for a loan modification, but may consider a short sale if that doesn’t work. We were really misled about how our loan could change and reset. What is the responsibility of loan brokers and/or banks who lied to their clients about the type of loan they were getting?”
Answer:
Unfortunately the loan brokers who misled their clients typically say everything was disclosed in the mass of loan documents signed in a rush at the last minute, even if it’s not what they told you it would be.
But all those pages are too much for a mere mortal to read and understand. You and everyone naturally relied on what your loan broker told you.
Unfortunately, I don’t know of anything you can do about it unless your lender gave you something different in writing. You should check with an attorney, but you probably have no recourse.