Got screwed with a Refinance

Shooby_IHB

Shooby_IHB

New member
I went through a refinance process in April and locked a rate of 4.625%. however with the merger of countrywide and BOA the loan docs were taking longer than usual to come in. So I was waiting patiently and following up with the broker to make sure this process moves along.



I heard yesterday that my rate was never officially locked. So now, I not only did not get the better rate, but seemingly lost out on the opportunity to refinance with the rates currently skyrocketing.



Are there any ideas? Or am i completely SOL at this point...
 
[quote author="Shooby" date=1244590562]I went through a refinance process in April and locked a rate of 4.625%. however with the merger of countrywide and BOA the loan docs were taking longer than usual to come in. So I was waiting patiently and following up with the broker to make sure this process moves along.



I heard yesterday that my rate was never officially locked. So now, I not only did not get the better rate, but seemingly lost out on the opportunity to refinance with the rates currently skyrocketing.



Are there any ideas? Or am i completely SOL at this point...</blockquote>
I'm sorry to say that you are SOL.
 
[quote author="Shooby" date=1244590562]I went through a refinance process in April and locked a rate of 4.625%. however with the merger of countrywide and BOA the loan docs were taking longer than usual to come in. So I was waiting patiently and following up with the broker to make sure this process moves along.



I heard yesterday that my rate was never officially locked. So now, I not only did not get the better rate, but seemingly lost out on the opportunity to refinance with the rates currently skyrocketing.



Are there any ideas? Or am i completely SOL at this point...</blockquote>


Same thing happened to me with B of A. My "locked" rate of 5.5 became 5.875 because it took them so long to close my rate lock expired. While pissed, I closed with B of A anyway because even at 5.875 it was lower than my original loan. They gave me the same excuse of being too busy because of the Countrywide merger. If you do business with B of A, you cannot assume they are diligently processing your application and must hound them every day until closing.
 
<A href="http://www.fieldcheckgroup.com/2009/05/29/5-29-the-day-after-the-interest-rate-spike/">http://www.fieldcheckgroup.com/2009/05/29/5-29-the-day-after-the-interest-rate-spike/</A>



<A href="http://www.fieldcheckgroup.com/2009/05/28/5-28-potential-consequences-of-55-mortgage-rates/">http://www.fieldcheckgroup.com/2009/05/28/5-28-potential-consequences-of-55-mortgage-rates/</a>
 
[quote author="freedomCM" date=1244593327]did you pay for the lock? what good is a lock if they can't get it done?</blockquote>


I paid for a lock once years ago - and then literally 48 hours before my closing and after they ignored my calls for a week, I found out they increased the rate by 2 percent. It was buried somewhere in the fine print that they were allowed to do that, so I had no recourse.
 
[quote author="freedomCM" date=1244593327]did you pay for the lock? what good is a lock if they can't get it done?</blockquote>


I didn't pay. I think you only have to pay for locks of more than 90 days.
 
SOL.... unless you have any scrap of paper or email stating that your rate was protected and that extensions were possible. If you do, I'd start lawyering up.



The big problem is that you went through a non-accountable broker versus a more responsible (gasp, choke...) direct lender. DL's have the reputation and deep pockets to make right circumstances that have gone awry. Trying to get financial recourse from a broker is like trying to hunt ghosts.
 
Here's my Bank of America/Countrywide story:



I went and got preapproved with BoA. Bankrate.com seemed to indicate they had the best rate, and they did give me a very good rate. I then showed my great rate to my real estate broker, who all but punched me in the face. Seems like he was the selling agent on a house that took <strong>90 days</strong> to close because the buyer had a BoA loan and they were completely useless. It wasn't even a complex transaction (standard sale, not a short sale or REO), and the buyer even had large amounts of money in other BoA accounts, borderline VIP status. If it was a REO, the owning bank would never be that patient and the buyer with the BoA loan would have lost the house. Since then, when he's the selling agent, my broker out and out refuses to accept any offers from buyers with BoA or Countrywide loans.



Needless to say, I went elsewhere for my loan, I recommend everybody else does as well.
 
I can't understand how BofA survives. My experiences with them were never good. Bad customer service experiences from years and years ago, and I don't think they have changed. We have a business account with them that's linked to our commercial mortgage. It took them 6 months and multiple requests from me to change the address on the account. I had stopped banking with them a long time ago. I told my wife to close her BofA account when we got married and she couldn't understand why. It took them 3 ~ 6 months and charged erroneous fees, and then she saw my point.



They did offer the best commercial loan when we needed it, however. Maybe that's how they stick around. I actually loved Wamu's service. I felt sad when they went under. Not sure how Chase will pan out.
 
[quote author="High Gravity" date=1244591682][quote author="Shooby" date=1244590562]I went through a refinance process in April and locked a rate of 4.625%. however with the merger of countrywide and BOA the loan docs were taking longer than usual to come in. So I was waiting patiently and following up with the broker to make sure this process moves along.



I heard yesterday that my rate was never officially locked. So now, I not only did not get the better rate, but seemingly lost out on the opportunity to refinance with the rates currently skyrocketing.



Are there any ideas? Or am i completely SOL at this point...</blockquote>


Same thing happened to me with B of A. My "locked" rate of 5.5 became 5.875 because it took them so long to close my rate lock expired. While pissed, I closed with B of A anyway because even at 5.875 it was lower than my original loan. They gave me the same excuse of being too busy because of the Countrywide merger. If you do business with B of A, you cannot assume they are diligently processing your application and must hound them every day until closing.</blockquote>


<sarcasm> Hahahaha the loan brokers are still playing ball! Gee ill just add 88 basis points because hey, wtf you gonna do, eh? hahahahahah </sarcasm>



just imagine, these guys are such scum bags, what's it gonna be like when feds own the banks? i just hope its an open source bank. Here's an idea, instead of all the middlemen, hows about ge cap funding direct? <sarcasm>o right that doesn't promote business because the middle men are really contributing to society by adding "basis points" and acting like its bioinformatics. </sarcasm>



haha paperwork, thats just classic
 
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