Mortgage question

[flowergirl]

My husband and I are refinancing our home here in Indiana. We signed the loan application on 9/18/00. The bank keeps stalling us on the Title Insurance. I have looked the loan application over with a "fine tooth comb" and I can find no language on it regarding us "locking" in an interest rate. It will be 30 days tomorrow since we signed and interest rates have fallen significantly. Are we entitled to the lower rate? Our bank says that we are not, however, they can not produce anything that says so to the contrary. Is there any phrases or laws that I can research to help us on this matter?

[This message has been edited by flowergirl (edited October 17, 2000).]

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by flowergirl:
My husband and I are refinancing our home. We signed the loan application on 9/18/00. The bank keeps stalling us on the Title Insurance. I have looked the loan application over with a "fine tooth comb" and I can find no language on it regarding us "locking" in an interest rate. It will be 30 days tomorrow since we signed and interest rates have fallen significantly. Are we entitled to the lower rate? Our bank says that we are not, however, they can not produce anything that says so to the contrary. Is there any phrases or laws that I can research to help us on this matter?<HR></BLOCKQUOTE>

Hey flowergirl, have not heard from you since Woodstock when Richie Havens was on stage playing Here Comes The Sun.

As a courtesy, I will let David J Miller get first response to your post.

 

[David J. Miller]

Homeguru, I'm all choked up over here.

There is a separate price protection or lock agreement that should have been signed when you locked your loan. If you did not sign said document, then your interest rate should have been "floating" and not locked. If the mortgage company cannot produce a signed lock agreement, then they should honor your request. If they don't, call the loan officer's area manager and complain. If that does not work and I'll use one of Homeguru's and Tracy's famous lines, get your attorney to write them a hammer letter (I love that) or fax the loan officer a request to cancel your file. It's amazing how much more willing a mortgage company is to sharpen up their pencil when the alternative is no business at all. Then go talk to a lender down the street. Bring all the paper work with you that you have from the current lender including all the paper work you supplied to the current lender. The closing will be delayed a little but you get the better rate and the satisfaction of "getting your business elsewhere." You probably had an appraisal completed? If you paid for it, you have a right to a copy of that appraisal which you'll need in order to avoid incurring that cost from the other lender. Although, if I were the other lender, I'd waive the appraisal fee just to get your business. Just explain the circumstances to the new lender and I'm sure they'll agree. If they don't agree to waive the appraisal, try the next company.

I'm curious about one thing - title problems? Call the title company and determine the exact nature of the title issues. That way when you lock the rate you can take into consideration the length of time it will take to obtain clear title and choose the appropriate lock-in period.

Good luck!

[This message has been edited by David J. Miller (edited October 18, 2000).]

 

[Tracey]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by David J. Miller:
I'll use one of Homeguru's and Tracy's famous lines, get your attorney to write them a hammer letter (I love that) <HR></BLOCKQUOTE>


Why thank you David. I wish I could take credit for the term, but I stole it out is Michael Kahn's latest book, Bearing Witness. If you aren't familiar with his work, he's an attorney in St. Louis who can write rings around Grisham. (IMHO) People who aren't lawyers read his stuff & chuckle, people who are lawyers laugh out loud, and lawyers in Chicago & St. Louis fall out of their chairs laughing. I so want to get a piece if In re Bottles and Cans!


------------------
This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws. [email protected] - please include some facts so I know who you are!

 

[flowergirl]

Thank you! I wanted to "go down the street to the next lender", but hubby just drags his feet and needed a little prodding. Thanks again. Flowerpower!