Mortage Fraud?

[TheWilson4]

It's beginning to look like the lender who is handling our refinance may be intentionally delaying funding the loan in order to allow the rate lock period to expire. The loan has closed and we have been told that there are no additional funding conditions that we need to fulfill, but that there is a funding condition that is "internal" to the lender/escrow agent, and they seem to be having trouble rectifying whatever it is. From what I have read in the news and on mortage-related forums online, this kind of delaying tactic is a growing issue right now, as mortage rates have gone up and lenders seem to be letting a number of the (overwhelming numbers of) extremely low-rate loans in process "expire," forcing consumers to buy loan products at higher rates (or not refinance). My question is, what legal recourse do we have if this situation continues past the last day of our rate-lock period (which is 8/25/03)?

Thank you. I am eagerly awaiting any help you may be able to suggest.

 

[HomeGuru]

It's beginning to look like the lender who is handling our refinance may be intentionally delaying funding the loan in order to allow the rate lock period to expire. The loan has closed and we have been told that there are no additional funding conditions that we need to fulfill, but that there is a funding condition that is "internal" to the lender/escrow agent, and they seem to be having trouble rectifying whatever it is. From what I have read in the news and on mortage-related forums online, this kind of delaying tactic is a growing issue right now, as mortage rates have gone up and lenders seem to be letting a number of the (overwhelming numbers of) extremely low-rate loans in process "expire," forcing consumers to buy loan products at higher rates (or not refinance). My question is, what legal recourse do we have if this situation continues past the last day of our rate-lock period (which is 8/25/03)?

Thank you. I am eagerly awaiting any help you may be able to suggest.

**A: contact your state consumer protection office.

 

[TheWilson4]

Thanks...

I have already sent an email inquiry to our state AG's consumer protection office. At this point, it looks like the lender is are extending the rate lock period, which is hopefully a sign that they intend to deal with us in good faith. I appreciate your advice, and any other that anyone might be able to post for me or someone else in a similar situation.

Thanks!
Amy

 

[AARRGG]

The exact same thing happened to a lady at work last year. She contacted the D.A. whole said that a couple other people were complaining about the same issue. The D.A. made threads and each person recieved a $1000 settlement

 

[HomeGuru]

Keep us posted Amy.

 

[TheWilson4]

All is well...

The rate lock was extended, and the loan has closed. Thanks for your advice. This article on the front page of the Washington Post yesterday was particularly timely, I thought: http://www.washingtonpost.com/wp-dyn/articles/A44861-2003Aug25.html

--Amy

 

[HomeGuru]

That's good news. Thanks for the article.