Sacramento

[sickandtired]

What if rate lock expires after seller and buyer both signed, down payment and closing costs paid and package sent back to escrow?

So we are in the process of closing on a house and the entire process has been a nightmare. It has dragged on for two months already and I think every worst case scenario that has happened with the file has. We signed and gave the title company a cashiers check for down payment and closing costs on Tuesday the 15th. Just to give you a little background this is a HUD home that we are buying. The lender is Guild Mortgage Company and the title is Chicago Title Company. We were suppose to close yesterday but apparently the seller (HUD) signed yesterday and instead of faxing they overnighted the signed documents back to Chicago Title which now puts us out to Tuesday. There has been some discussion about the possibility of having to redraw docs and do it all over again because the rate lock expired yesterday. Would the lender really have us start back at signing all over again if the package is received and ready to be done Tuesday morning? I think that is a little ridiculous....well A LOT ridiculous. Anyway, I have heard that in most cases the lender will let it go as it is and go ahead and close out the file. Why would they even discuss having to redraw docs??? My LO has contacted Guild to see if they will allow it to fund Tuesday without having to do the process over again and is awaiting their response. What has been your experience? Has anyone worked with Guild and no how they operate? Do you think we will be able to close Tuesday or are we going back to square one and lose another week having to have everyone re-draw, re-sign and re-approve????

[JulieS]

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