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Answers (7)
Best Answer
- Eric Patterson, "Eric Patterson"
- Contributions:27
zakeller,
You would have to prove the broker acted on bad faith but if their company policy does in fact limit the Lock-in rate to the property you will probably have no recourse. Unless you are an attorney with plenty of time on your hands I would advise to move on to another lender.
Most of the banks I broker for (Wells Fargo, M&T Bank, Chase) allow the borrower to change properties and loan amounts as long as the ratios are within the same guidelines as the original property on the Rate Lock.
You would have to prove the broker acted on bad faith but if their company policy does in fact limit the Lock-in rate to the property you will probably have no recourse. Unless you are an attorney with plenty of time on your hands I would advise to move on to another lender.
Most of the banks I broker for (Wells Fargo, M&T Bank, Chase) allow the borrower to change properties and loan amounts as long as the ratios are within the same guidelines as the original property on the Rate Lock.
you ask for recourse.
If it were a Broker, you could complain to the colorado department of finance.The department has more control of the brokers. So they could make a call to the Broker and tell that broker that that loan could be the last loan that they do if they don't fix the problem.
If it were a Bank you would go on line and make a complaint to the OCC which is located in Houston. And then wait, and wait, and wait, and wait until nothing happens.
If it were a Broker, you could complain to the colorado department of finance.The department has more control of the brokers. So they could make a call to the Broker and tell that broker that that loan could be the last loan that they do if they don't fix the problem.
If it were a Bank you would go on line and make a complaint to the OCC which is located in Houston. And then wait, and wait, and wait, and wait until nothing happens.
With the new rules. Wellsfargo doesn't allow it any more. Just like , if you order an appraisal and the appraiser didn't do a full appraisal and you wanted a full apraisal for the full value. you have to pay for a whole new appraisal. The new rules suck.
Rates are better now anyways. A good table funding lender can close your loan in 12 days. Shop around, We are out there!
current rates are 4.75%.
5.5% has 2.8 points to the broker.
Rates are better now anyways. A good table funding lender can close your loan in 12 days. Shop around, We are out there!
current rates are 4.75%.
5.5% has 2.8 points to the broker.
- Mtg Master
- Contributions:5
I have been in the mortgage business for almost 30 years.
Locks have always been based on the property for every company and investor I have ever worked with, if the property fell through due to the property not appraising for the sale price on an FHA and the sellers not being willing to budge, you are back at the market. So when the broker told your that the lock-in is specific to the property in my option they were correct.
Locks have always been based on the property for every company and investor I have ever worked with, if the property fell through due to the property not appraising for the sale price on an FHA and the sellers not being willing to budge, you are back at the market. So when the broker told your that the lock-in is specific to the property in my option they were correct.
- zakeller
- Contributions:5
Great - clear as mud. ;-)
Eric: My DTI with the new property would be different, but not by much at all. The new property is only $6k more.
Darren: "if the property fell through and the lock expired..." That's my point, the lock had not expired. The expiration date was three weeks away when the deal fell through. We were told that the lock-in was not valid anymore (which I now understand may have been a lie). If we had known that we needed to close out a loan by our lock-in deadline I know we would have made different choices and been able to do so.
So now that my lock-in has expired - yesterday - do I have any recourse if they did in fact lie to me?
Eric: My DTI with the new property would be different, but not by much at all. The new property is only $6k more.
Darren: "if the property fell through and the lock expired..." That's my point, the lock had not expired. The expiration date was three weeks away when the deal fell through. We were told that the lock-in was not valid anymore (which I now understand may have been a lie). If we had known that we needed to close out a loan by our lock-in deadline I know we would have made different choices and been able to do so.
So now that my lock-in has expired - yesterday - do I have any recourse if they did in fact lie to me?
- K2Lending
- Contributions:4
Lock in's are sometimes different with different banks. But most of the time, locks are associated with the property. So, if the property fell through and the lock expired then a new lock must be established with a new property. As of right now, I have a 30 Year fixed rate for 5.125 with .75% discount point. I am local here in the Denver Tech Center. Please let me know if you need my help [content removed by moderator for being self-promotional]
- Eric Patterson, "Eric Patterson"
- Contributions:27
In Colorado, is a rate Lock-in tied to a given property or Borrower?
They are now offering 5.5% and 1 point, a pretty significant difference to my eyes. Do I have a right to hold them to my lock-in?
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