01-20-2013 02:22 PM
What if rate lock expires after seller and buyer both signed, down payment and closing costs paid and package sent back to escrow?
01-21-2013 06:01 PM
Yep, this is definitely a nightmare, and it could go either way. If you're lucky and the rates are the same as when you locked they might be able to re-lock it and fund it. If not then you might be in for some more pain. The banks are so heavily regulated now that they can't draw out of the lines or they'll be in big trouble. Most everybody is terrified of doing anything that might jeopardize their ability to sell the loan to Fannie or Freddie - the only entities buying loans in the secondary market.
The good thing is that you're almost there. Hang on and your agent and loan rep will figure it out for you. I'm not surprised at HUD - they seem to work on a timeline of their own.
Julie Millard Stadel, Broker