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Bank is raising my refinance rate

I had locked my refinance rate at a very good rate with a Bank. The bank acted so slow to approve my loan that the rate has expired. I kept calling them and asking for the approval. Every time they assured me that everything is going to be alright and the loan will be approved on time. Now that they approved my loan they are telling me that the rate has expired and went up by .50% with no closing help this time. I feel like I have been jerked around. What can I do in this situation? I tried to call the loan officer's boss but he has not replied my calls. Please tell me what are my rights?
  • August 16 2013 - US
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Answers (5)

Hard to read between the lines, but I would say to grab your signed lock agreement and verify the dates. Also, check those emails. If nothing was in writing, then you may be out of luck. This is all too common and a lesson to all when locking an interest rate. Get it in writing. Any rate lock extension, get it in writing.
Make certain that you did not delay anything on your part. However, if there was a 3rd party snag, this can be hard to quantify whether a delay was on your part or of the lender. i.e. delay in obtaining a subordination agreement from your 2nd lien holder, employer not responding to requested info, etc.
  • August 16 2013
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Thanks for your replies. Answer to your question: During the slow process, I made an inquiry, the loan officer told me she extended the loan rate. But right after the loan was approved, then without any hesitation or any apology, she said the extension department could not extend the rate and no lender honor the same rate any more. What I personally feel is the loan officer purposely let the loan expire. The reason I feel this way is because I called her every day but each time she had a new excuse and assured me is going to be approved the next day. I left 3 messages for her boss, he did not reply my phone calls. I do not know who else I can call?
  • August 16 2013
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User,

If your lock has expired there is not much you can do. Unless they offered a lock extension and you have proof that you requested a lock extension or they never offered an extension but one was available, you wont get far.
If it is a Bank and not a broker, you will most likely get traction by going above the head the non-responsive manager. If you can document the timeline and show it was not your delay that caused the lock to expire and/or show you were not offered a lock extension, you may get somewhere as Banks like to make things go away. They may very well honor your rate that was originally locked. If you are working with a broker, you dont have much recourse.

All the best.
  • August 16 2013
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First, is the loan approved? Secondly, what was the hold up to begin with? Was it an appraisal issue, not getting documentation over in time, etc.? Thirdly, if the bank did drop the ball, then they should be able to easily rectify their mistake, but again, if it's not the banks fault-then you will need to decide if you would want to start the process all over again with a new lender.

Good Luck!   
  • August 16 2013
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So long as you haven't signed final loan docs you can still pull out. I'm assuming that they didn't extend your lock on the rate and probably wont   honor your original rate since disclosure are only good for so many days. I'm sorry to hear of your experience. Good luck!

  • August 16 2013
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