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My lender has now twice asked me to pay for a lock on the loan and the real estate agent says I can

The oan officers processor is new to HUD foreclosure procedures. I have had to have lock on interest rate extended twice in ONE week ($637), paid $375 to HUD to extend loan and have to pay another $375 this week to extend loan. My real estate agent acknowledged that the lender is the issue, but says I will forfeit my earnerst money if I don't follow through.
I am getting fed up with the process.
Am I forced to continually extend the contract?
  • June 08 2013 - Tyler
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Answers (3)

Profile picture for Dallas Best Mortgage
It does sound to me like your lender does not know the guidelines and they are trying to wing it. I would find another lender who is a direct lender not a party who cant underwriter and have them issue a commitment letter then ask if they can close within 10 days and used your extension wisely. Have them put everything  in writing.
Good Luck

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  • June 09 2013
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It's been my experience that most loan locks are in place for 30-45 days. Not quite understanding why you have had to pay for a lock twice in 1 week.
  • June 09 2013
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I don't understand any of what you said?

It is normal to pay for interest rate lock.

All HUD homes are foreclosures that I know about.
Doing a loan on a HUD home is really no different than any other home.
If you hitting delays and excuses it is likely not the right lender.

You probably need to get on board with one who can close and close on time.  There are lenders who do this every day.

  • June 08 2013
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