Comments on: Extensions: When Your Time is Up With Your Lock http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Rhonda Porter http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343442 Rhonda Porter Tue, 20 Oct 2009 15:10:33 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343442 There is additional dialogue about this post/recent comments on my FB profile http://www.facebook.com/profile.php?id=726876045&v=feed&story_fbid=153969738601 (hope this link works)... There is additional dialogue about this post/recent comments on my FB profile http://www.facebook.com/profile.php?id=726876045&v=feed&story_fbid=153969738601 (hope this link works)…

]]> By: Rhonda Porter http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343434 Rhonda Porter Mon, 19 Oct 2009 01:14:24 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343434 Ardell, it may not be the issue, but it does seem to be Chad's question. I do agree since it's a buyers market, it's tougher for Chad to argue his point. If I were the seller and the buyer switched programs and/or lender (if a preapproval letter was used with the offer) I would be royally peaved if the transaction was delayed. Ardell, in a seller's market, could a seller get out of the contract if the buyer did not stick to the financing addendum? Ardell, it may not be the issue, but it does seem to be Chad’s question. I do agree since it’s a buyers market, it’s tougher for Chad to argue his point.

If I were the seller and the buyer switched programs and/or lender (if a preapproval letter was used with the offer) I would be royally peaved if the transaction was delayed.

Ardell, in a seller’s market, could a seller get out of the contract if the buyer did not stick to the financing addendum?

]]> By: ARDELL http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343433 ARDELL Mon, 19 Oct 2009 00:43:01 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343433 Rhonda (and Chad), I don't think the switch of lender is the primary issue in that example, as the type of loan is about the finance contingency of the buyer, not the close date for the seller. The key point would have been when the buyer asked for a close date extension (regardless of why). Before signing off on the close date extension, the seller could negotiate the additional cost to them as part of agreeing to a later close date. Going back after the fact to do that is difficult, and if the transaction has already closed, nearly impossible. Depending on where you are, a seller having a buyer at all in this buyer's market makes it hard to make demands on the buyer. Probably everyone at the time was happy that the buyer could close at all...even if it was a little late. Rhonda (and Chad),

I don’t think the switch of lender is the primary issue in that example, as the type of loan is about the finance contingency of the buyer, not the close date for the seller. The key point would have been when the buyer asked for a close date extension (regardless of why). Before signing off on the close date extension, the seller could negotiate the additional cost to them as part of agreeing to a later close date. Going back after the fact to do that is difficult, and if the transaction has already closed, nearly impossible.

Depending on where you are, a seller having a buyer at all in this buyer’s market makes it hard to make demands on the buyer. Probably everyone at the time was happy that the buyer could close at all…even if it was a little late.

]]> By: Rhonda Porter http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343431 Rhonda Porter Mon, 19 Oct 2009 00:10:35 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343431 This could be a good question for a real estate agent...if the purchase and sales agreement specified a specific loan program, conforming with x% down payment and the buyer switched this without informing you...you may have a point. With that being said, although they may have cost you money with having to extend your loan, even if they "should" pay for the extension because it would be the "nice" thing to do; I wouldn't count on it happening. Have you discussed this with your real estate agent? What does he/she say? This could be a good question for a real estate agent…if the purchase and sales agreement specified a specific loan program, conforming with x% down payment and the buyer switched this without informing you…you may have a point.

With that being said, although they may have cost you money with having to extend your loan, even if they “should” pay for the extension because it would be the “nice” thing to do; I wouldn’t count on it happening.

Have you discussed this with your real estate agent? What does he/she say?

]]> By: Chad http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343414 Chad Thu, 15 Oct 2009 17:30:00 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-343414 We got a buyer for our home and seen the pre-approval letter from their bank. We locked in our rate for our new home. Without our knowledge the buyers agent for our house advised him to apply for a different loan than what was on the offer to purchase. That bank then delayed an appraisal getting completed for our house thus closing was pushed back and we had to extend our rate lock. We think the buyers agent should pay for our rate lock extension because that would not have happened if they applied with the bank on the OTP. Thoughts? Thanks. We got a buyer for our home and seen the pre-approval letter from their bank. We locked in our rate for our new home. Without our knowledge the buyers agent for our house advised him to apply for a different loan than what was on the offer to purchase. That bank then delayed an appraisal getting completed for our house thus closing was pushed back and we had to extend our rate lock. We think the buyers agent should pay for our rate lock extension because that would not have happened if they applied with the bank on the OTP. Thoughts? Thanks.

]]> By: Rhonda Porter http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341976 Rhonda Porter Fri, 24 Jul 2009 18:12:05 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341976 <p>Jovan, good luck! Are you going to stick with BOA? Make sure who ever you're "re-assigned" to that they are experienced. I would insist on it...especially considering what you've gone through.</p> Jovan, good luck! Are you going to stick with BOA? Make sure who ever you’re “re-assigned” to that they are experienced. I would insist on it…especially considering what you’ve gone through.

]]> By: Jovan (CA) http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341974 Jovan (CA) Fri, 24 Jul 2009 17:37:10 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341974 that is a good idea. I will do that. My LO just retired and iw as re-assigned to a new person. I will call him today. Thank you again. that is a good idea. I will do that. My LO just retired and iw as re-assigned to a new person. I will call him today. Thank you again.

]]> By: Rhonda Porter http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341697 Rhonda Porter Wed, 15 Jul 2009 14:59:28 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341697 <p>Jovan, have your BOA LO provide you with an updated Good Faith Estimate detailing all the cost associated with your transaction. </p> Jovan, have your BOA LO provide you with an updated Good Faith Estimate detailing all the cost associated with your transaction.

]]> By: Jovan (CA) http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341675 Jovan (CA) Tue, 14 Jul 2009 15:25:13 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341675 Thank you for the quick response, Rhonda. We spoke to our loan agent yesterday. She is with BofA. We are extending our rate of 4.875 at a cost of 2% for 30 more days. Our realtor has said she will pick up the cost of the extension. I hope she keeps her word. We have had to extend over and over. Doesn't that mean that each extension will b have a seperate cost for each time? So, for the extensions from April, May and June, we will have a tallied cost. Right? Sounds like alot of money. We already cut a check when we were suppose to be closing at the end of May. All of this will be added to that is what you are saying? Thank you for the quick response, Rhonda. We spoke to our loan agent yesterday. She is with BofA. We are extending our rate of 4.875 at a cost of 2% for 30 more days. Our realtor has said she will pick up the cost of the extension. I hope she keeps her word. We have had to extend over and over. Doesn’t that mean that each extension will b have a seperate cost for each time? So, for the extensions from April, May and June, we will have a tallied cost. Right? Sounds like alot of money. We already cut a check when we were suppose to be closing at the end of May. All of this will be added to that is what you are saying?

]]> By: Rhonda Porter http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341656 Rhonda Porter Mon, 13 Jul 2009 21:58:02 +0000 http://raincityguide.com/2008/02/27/extensions-when-your-time-is-up-with-your-lock/#comment-341656 <p>Hi Jovan, Extensions are typically an additional cost depending on: 1) the lender your mortgage rate is locked in with (different lenders may have different policies). I wrote about this is the post above but I can see that because of our new format, it's looking kind of "wonky" so I'll edit that for you :) 2) what the market is currently doing. Sometimes if rates have improved, the lender may be able to negotiate a free or low cost extension. If rates are higher than your locked rate, there will be a cost to the extensions.</p> <p>Your loan originator should be redisclosing a new good faith estimate with you if there are additional cost associated with your mortgage.</p> <p>Good luck!</p> Hi Jovan,
Extensions are typically an additional cost depending on:
1) the lender your mortgage rate is locked in with (different lenders may have different policies). I wrote about this is the post above but I can see that because of our new format, it’s looking kind of “wonky” so I’ll edit that for you :)
2) what the market is currently doing. Sometimes if rates have improved, the lender may be able to negotiate a free or low cost extension. If rates are higher than your locked rate, there will be a cost to the extensions.

Your loan originator should be redisclosing a new good faith estimate with you if there are additional cost associated with your mortgage.

Good luck!

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