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Homeowner lostBindingPending attorney reviewTexas home-equity loans

Doody v. Ameriquest Mortgage Co.

Doody v. Ameriquest Mortg. Co., 49 S.W.3d 342 (Tex. 2001)

Court
Supreme Court of Texas
Decided
2001-06-07
Docket
01-0137

What happened

Ameriquest charged closing costs over the 3% limit on the Doodys' home-equity loan, then refunded the overcharge. The Doodys argued the lien was invalid anyway.

What the court decided

Answering a question from the Fifth Circuit, the Texas Supreme Court held that when a lender cures the overcharge as the constitution allows, the lien is valid.

Why it may matter to you

It explains why sending a written notice of a home-equity defect matters: the lender gets a chance to cure, and if it does, the problem may be fixed rather than the loan voided.

Why it might not apply

Only defects the constitution allows to be cured can be fixed this way; the cure must follow the constitution's steps and deadlines.

Most useful when

  • Your home-equity lender overcharged closing costs and then offered a refund

How to cite it

The full citation for the first time you mention it, a short form for later, and a sample sentence you can adapt.

Full citationDoody v. Ameriquest Mortg. Co., 49 S.W.3d 342 (Tex. 2001)Short formDoody, 49 S.W.3d 342

Draft — check it with free legal aid before you file or say it in court.

In Doody v. Ameriquest Mortg. Co., 49 S.W.3d 342 (Tex. 2001), the court held that a home-equity lender that cures a closing-cost overcharge as the constitution permits holds a valid lien. Here, [say in one sentence what happened in your case]

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