Bank purposefully holding up closing??

[WhipSmart]

Greetings,

My wife and I found a house and made an offer that was accepted immediately and set closing for just under 6wks out (b/c of our schedule and the seller's).

A few days later, we completed our loan paperwork and got a great rate locked in for 45 days.

The lock-in period ends Aug 10th. Our closing date is supposed to be today, but the bank has dropped the ball several times already and this latest mishap has caused us to have to reschedule closing for tomorrow afternoon.

Given all the issues we have had with this bank (a normally reputable regional institution), is it possible that they are purposefully holding things up knowing that our lock-in date is so close, hoping that they will nail us with a much more advantageous rate for themselves?

They've had nearly 6wks to get things in order. They've entered in wrong SS#'s, asked for employment info repeatedly (which we have given them each time) and then claimed to never having receiving it, refused to release documents to the title company and this morning flat out lied to me about who had the loan documents.

Several friends have told me that everything happens at the last minute with closing... but we have been available and helpful and given them everything they have asked for promptly and courteously and now we are having to rearrange our schedules b/c they can't get the job done.

If, for whatever reason, our closing date ends up past the lock-in date for our loan rate, what options are open to me?

Sorry, I know this post is a bit 'rambly', but I am so frustrated and don't know how to protect myself.

Thanks
-WS

[RESteve]

Hi WS,
Welcome to the forums. Do you have a mortgage professional that you're working with at the bank? Agents rarely have insight into the lending practices of major institutions (unless they're also a loan officer), so this might be a better question to forward to them.

It's really unfortunate that they keep dropping the ball, but to answer your question about protecting yourself we'll need to get a mortgage professionals opinion.

I'll email my contact and get back to you shortly.

[WhipSmart]

Steve,

Yes, we are working with a mortgage professional with the bank. She has been polite, but has told me and my wife different details about who is doing what and what they are waiting on, etc... There is also another 'man' she keeps referencing regarding things that have gone wrong, but she has never told us his name.

I know many agents have not seen the inner workings of a lending institution, but surely many have seen their clients run into issues. I'm merely curious if any agents here have seen or heard of this behavior and how their clients eventually handled the situation.

Thanks for your reply and for checking your contacts for more information. It is greatly appreciated.

-WS

[Goknights]

maybe i read to quick.. when you say bank, do you mean your lender or is the property bank owned? which one is holding up the closing?

[stevetrang]

It's a given that some lenders are not as competent as others. Is this someone you found or did your agent recommend them? It's for reasons like this that I usually push my guys, because if they pull stunts like this, they get no more business from me.
That's a long way to say yes, it is very common for these things to happen if the lender is incompetent, which I would estimate happens about half the time. I'd make the lender pay the lock extension.

[WhipSmart]

maybe i read to quick.. when you say bank, do you mean your lender or is the property bank owned? which one is holding up the closing?

Our lender.

[WhipSmart]

It's a given that some lenders are not as competent as others. Is this someone you found or did your agent recommend them? It's for reasons like this that I usually push my guys, because if they pull stunts like this, they get no more business from me.
That's a long way to say yes, it is very common for these things to happen if the lender is incompetent, which I would estimate happens about half the time. I'd make the lender pay the lock extension.

This is not only a reputable bank, but it is where we have been banking for years, where we have tens of thousands of dollars, where the branch manager knows my wife and I by name.

That's what makes this so unbelievable to me.

[Goknights]

the bank may pay the fees or points to keep rate down if the delay is their fault. i would ask if needed.

[WhipSmart]

Just received a forwarded email from they buyer's agent where our mortgage agent told her that the title co. would be receiving the loan docs on 7/15. She (buyer's agent) replied back to the mortgage agent two hours ago who cc'd me in on her reply that she was sending the docs now, and would wait to hear back from the title co on the HUD1 and that she was sorry for the inconvenience.

I'm curious about this b/c I thought it was a law (state by state, probably (I'm in TX, btw)) that the HUD1 settlement sheet had to be made available at least a day in advance of closing. We won't be getting ours until literally a few hours before closing (if it actually happens this time, that is)

[Micheal Pannell Realtor]

It happens all the time in Texas. We never see the HUD1 before closing.