closing escrow

[kubert13]

Question for brokers, agents and anyone else familiar with closing escrow:

Are borrowers ALWAYS the ones responsible for paying an interest rate lock extension penalty when escrow fails to close on time (i.e. within the lock period)? What if the it is not the borrowers fault for escrow failing to close? For example: waiting for an HOA cert to be returned by the HOA?

Thanks!

 

[usctrojancpa]

Question for brokers, agents and anyone else familiar with closing escrow:

Are borrowers ALWAYS the ones responsible for paying an interest rate lock extension penalty when escrow fails to close on time (i.e. within the lock period)? What if the it is not the borrowers fault for escrow failing to close? For example: waiting for an HOA cert to be returned by the HOA?

Thanks!

I would call the lender to see if they can make a exception first.  If that doesn't work, I would speak with the listing agent and/or the escrow company.  If either of them was responsible for the delay in getting the HOA cert then they should cover the loxk extension fee.  Do you know if you rate will be higher at market versus what you locking in at?  Rates have been kind of flat for the past month or so.  Unfortunately if no one steps up to cover the fee, the borrower will be the one who is responsible for it.  Good luck.

 

[kubert13]

Question for brokers, agents and anyone else familiar with closing escrow:

Are borrowers ALWAYS the ones responsible for paying an interest rate lock extension penalty when escrow fails to close on time (i.e. within the lock period)? What if the it is not the borrowers fault for escrow failing to close? For example: waiting for an HOA cert to be returned by the HOA?

Thanks!

I would call the lender to see if they can make a exception first.  If that doesn't work, I would speak with the listing agent and/or the escrow company.  If either of them was responsible for the delay in getting the HOA cert then they should cover the loxk extension fee.  Do you know if you rate will be higher at market versus what you locking in at?  Rates have been kind of flat for the past month or so.  Unfortunately if no one steps up to cover the fee, the borrower will be the one who is responsible for it.  Good luck.

Thank USC, Ill contact the lender. Initially they didn't need a HOA cert but asked for one at the last minute. Apparently, the HOA have a high volume of requests right now so their turnaround time is 3 days.

Because the lender requested it so late in the process, do you think that is a good enough reason to ask that they pay the extension fee?

 

[usctrojancpa]

Question for brokers, agents and anyone else familiar with closing escrow:

Are borrowers ALWAYS the ones responsible for paying an interest rate lock extension penalty when escrow fails to close on time (i.e. within the lock period)? What if the it is not the borrowers fault for escrow failing to close? For example: waiting for an HOA cert to be returned by the HOA?

Thanks!

I would call the lender to see if they can make a exception first.  If that doesn't work, I would speak with the listing agent and/or the escrow company.  If either of them was responsible for the delay in getting the HOA cert then they should cover the loxk extension fee.  Do you know if you rate will be higher at market versus what you locking in at?  Rates have been kind of flat for the past month or so.  Unfortunately if no one steps up to cover the fee, the borrower will be the one who is responsible for it.  Good luck.

Thank USC, Ill contact the lender. Initially they didn't need a HOA cert but asked for one at the last minute. Apparently, the HOA have a high volume of requests right now so their turnaround time is 3 days.

Because the lender requested it so late in the process, do you think that is a good enough reason to ask that they pay the extension fee?

All depends on the lender...it sounds like something they should have requested earlier so I would lean on them.  But again, before you expend too much time and energy find out what the negative impact on the expiration of the rate lock has because you may find out it has none (lender will take your rate/fees to the higher of the lock amount or market...but if market is less than or equal to your lock then they go with your lock terms).

 

[sgip]

Curious what your cost is and why it's even being charged. Our costs are .125 in fee for 5 business day extensions. Most direct lenders will absorb the cost. Brokers... who knows. Can you share with us what the numbers are looking like?

The "why" question is also important. The cost/available rebate of most rates really came down in the early to middle part of August, then crept up a bit since. Cost for rates have been relatively flat though over the past 5 business days. Couldn't your lender have re-locked instead of extended? Re-locking is just taking todays rate and fees versus what was locked 30 days earlier.

As to whose fault it is - it's the mortgage loan officers. The lender's Underwriter would have conditioned for an HOA certificate right away as a "prior to loan document" issue. Most HOA's have a "rush fee" - $100 to as high as $300 which is likely far less than the rate lock extension you may be asked to pay. When Escrow's order HOA documents for the buyer, they often (often isn't "always" BTW) call the lender and ask if an HOA cert is needed. It's not the Escrow's job to get HOA certs. They have to get HOA CCR's, budgets, bylaws, and the Master Insurance Policy, but not the lenders HOA Cert. Sometimes docs and insurance is delayed and that's the Escrow's fault. In this case it does not appear to be their issue.

My .02c

Soylent Green Is People.

 

[ps99472]

When I refi'd last time the broker picked up the HOA certificate and paid for it as well.  He even paid for a rush fee for the loan to close on time.  But that was for a refi,  for purchase loans, good luck, ball is never in your court.