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Answers (15)
Best Answer
- Andrew Adams, "203K Specialist"
- Contributions:9349
Don't pay it. If they come after you for the funds contact an attorney.
- Concrnd
- Contributions:18
There is no lock agreement. And there is no disclosure that says we should pay for pair-off fee when we cancel the loan. Is there any legal means we should seek?
- Chris Hacker, "thelendingcoach"
- Contributions:130
I have not heard of being charged for cancelling, but for a lock extension that is correct. Sometimes if the pricing is better at the time of extension you can get a free 10 day extension.
- Andrew Adams, "203K Specialist"
- Contributions:9349
I would recheck your initial disclosures. I have never heard of a lender locking in a loan without some kind of rate lock agreement.
- Concrnd
- Contributions:18
There is no rate lock agreement at all. We have asked for it but they have never given us anything.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Rates and fees are always tied hand in hand. They quoted you the sharpest price they could and in addition did it under the mandatory pricing which if the lender does not deliver the loan they get charged. The pricing is typicallyu better but if the loan is not delivered there is a charge. Legally I don't know that they can pass that on to you. I also don't know what agreements you signed. I would double check your rate lock agreement. I would not be shocked if within the agreement is in fact you agreeing to pay that fee if for any reason the loan does not close.
- Concrnd
- Contributions:18
Their rate is the same as the other banks in the neighborhood but they have the lowest closing cost.
What is going to happen if we refuse to pay the pair-off fee when we cancel the loan application?
Another thing is we were never informed of this pair-off fee. If we knew it in advance, we would not have locked the interest rate.
What is going to happen if we refuse to pay the pair-off fee when we cancel the loan application?
Another thing is we were never informed of this pair-off fee. If we knew it in advance, we would not have locked the interest rate.
- Andrew Adams, "203K Specialist"
- Contributions:9349
I don't know a lender could charge a pair off fee. Sounds to me tha they did a mandatory lock and will not be delivering the loan.
Did you choose this lender because they had the lowest rate!
Did you choose this lender because they had the lowest rate!
- Concrnd
- Contributions:18
This is happening in Mattoon IL. My original lock was 30 days.
- Karen Oliver, "right1"
- Contributions:20
It has been my experience that a borrower can get a 1 or 2 day extension, at no cost. If you need a 3 or 5 day lock it can cost up to .400 , 10 day and 14 day extensions are available as well, at about .625%. If I was the loan officer and it was my fault, or even the sellers fault I would pay the fee. But not before I pressed the seller to make a concession or pay the fee.
Unfortunately deals fall through every day, and I have never had a borrower pay any thing but the appraisal/ or inspection fee. Usually you can only extend a lock twice.
How long was your lock and what state are you in?
Unfortunately deals fall through every day, and I have never had a borrower pay any thing but the appraisal/ or inspection fee. Usually you can only extend a lock twice.
How long was your lock and what state are you in?
- Concrnd
- Contributions:18
The bank said that they are selling the loan to Fannie Mae and it is Fannie Mae who is charging the pair-off fee.
You also mentioned that there should not be any re-lock fee. Is there any official guidline on the re-lock fee and cancellation fee that we can bring it up to the bank?
Thanks a lot!
- Carl Ashton, "Carl Ashton"
- Contributions:86
No Loan No charges.....
Only thing we can charge for is a competitive credit or application fee, must be competitive or at market tolerance.
(if avg is $ 99 dollars all we can charge is 99 dollars) anything above is a violation of RESPA.
(The above is not applicable to multi family 4+ commercial or 203 K and Homepath renovation mortgages)
If property shows water damage you can also get your deposit back ....
Only thing we can charge for is a competitive credit or application fee, must be competitive or at market tolerance.
(if avg is $ 99 dollars all we can charge is 99 dollars) anything above is a violation of RESPA.
(The above is not applicable to multi family 4+ commercial or 203 K and Homepath renovation mortgages)
If property shows water damage you can also get your deposit back ....
- Concrnd
- Contributions:18
Thank you for the responses.
Lock-in was long enough. Property showed water damage after the rain and was spotted during the final walk-through.
Can the lender charge a pair-off fee even when you want to cancel the loan application?
Are there official mortgage regulations in IL?
Lock-in was long enough. Property showed water damage after the rain and was spotted during the final walk-through.
Can the lender charge a pair-off fee even when you want to cancel the loan application?
Are there official mortgage regulations in IL?
- Dave Skow, "daveskow"
- Contributions:1105
your wording is a bit confusing "Due to Seller's fault, our rate lock-in has expired before the closing"...was the rate locked long enough to begin with ?? what was the intial closing date supposed to be and what was the initial lock expiration date ? if the initial lock expiration date was before the intial closing date , the lock was intially done incorrectly and you could blame the loan officer for not locking rate in for a long enough period
if missing the closing date ( and the rate lock expiration date ) is truly the " sellers fault" , you might alert the sellers ( and their agent , if they have one ) about this and try to renegotiate with them for them the sellers( or listing agent ...or both) to provide you with a credit to offset the addtl cost that your lender is trying to charge / collect
try to work this out with present lender , seller and agents as beginning process with new loan company will be very difficult , time consuming etc....
- Carl Ashton, "Carl Ashton"
- Contributions:86
I would recomend finding another lender or working it out with the current one, I have been with Brightgreen, Goldstar and America Home key, none of which charge a re-lock fee.
The rate may climb or fall (several times a day without a lock) and if you have points to get a lower rate that may change cost but never have I heard "as of late" charging a Re-lock fee.
You would have recieved a lock in disclosure in your inital packet you signed. it has a time limit as we will only "hold" the money for your loan for so long.
You will also have to resign the packet as fees have changed and the lender will need to redisclose.
To learn about points : http://banking.about.com/od/mortgages/a/discountpoints.htm
The rate may climb or fall (several times a day without a lock) and if you have points to get a lower rate that may change cost but never have I heard "as of late" charging a Re-lock fee.
You would have recieved a lock in disclosure in your inital packet you signed. it has a time limit as we will only "hold" the money for your loan for so long.
You will also have to resign the packet as fees have changed and the lender will need to redisclose.
To learn about points : http://banking.about.com/od/mortgages/a/discountpoints.htm
Lock-in expired, lender charging two thousand some dollars for re-lock or cancel the loan
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