Refinance problem/issue

We recently refinanced our house, and had the following problem/issue: We locked in a rate for 30 days. At about the 30 day point the rates had dropped. We asked the broker about relocking at the lower rate, but he stated to us that he had automatically put in a 15 day extention. He understood the problem this caused and agreed to give us $250 money back in escrow if we kept the lock (and the process going). Well we signed documents with escrow (the $250 was showing as being owed to us in the paperwork we signed), and everything was fine. But we later found out that escrow faxed the loan application to the lender, and the lender would not fund the loan until they recieved the original (via snail mail). So waiting for the original to arrive takes us outside the lock period, and the lender wants to fund at a higher rate. The broker talks him into the original rate, but the lender informs the broker that he will make nothing on the loan referal. So what happens?? The broker takes the $250 back and we are left holding the bag. Luckily escrow did not need to ask for any additional money from us to close.

Bottomline is this was not our fault. It was either the broker, the lender, or both. My question is... Shouldn't escrow protect you from this? Can I get the $250 back from the broker/lender or would you have to sue (small claims)?? Advice??

Thanks.

[HomeGuru]

Escrow does not get involved in side agremments bewteen the parties. Now if there was an agreement in writing to the $250 and said agrememnt was submitted to escrow, the HUD 1 would have indicated this.
If I were you I would file a consumer complaint against the mortgage broker.

Thanks for the reply. This was not an FHA or VA loan, and I do not find a HUD1 form in my paperwork. But... I do find escrow instructions (signed by us) telling the escrow company that they were to collect $250 credit from the broker. They did not, and the instructions were never amended (updated) for our signature. I also suspect that new loan application was filled out (after we signed papers), and not signed by us, in an effort to close the deal (escrow). This just seems wrong... not just a complaint. Thanks in advance for any further advice.

[HomeGuru]

Then go back to the escrow company and demand your $250 with interest.
Also have then show you the HUD 1 form. Escrow companies used this form even for non-government type loans.