Legal Question in Real Estate Law in California

Expiration of Mortgage Locks

If a mortgage lock expired, is it legal for the lender to ''automatically'' extend the lock without consulting the borrower or disclosing to them either written or verbally that they will extend the lock when rates have dropped?


Asked on 10/03/01, 1:02 pm

2 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Expiration of Mortgage Locks

NORMALLY THEY CANNOT EXTEND WITHOUT YOUR PERMISSION. IT DEPENDS ON THE CONTRACT. I WOULD BE HAPPY TO REVIEW YOUR CONTRACT AND CONSULT WITH YOU AT NO CHARGE. PLEASE FAX IT TO ME AT 714 363-0229

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Answered on 11/17/01, 8:07 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: Expiration of Mortgage Locks

Yes, they can extend the lock, but you are not required to use them. You may want to shop around, or ask the lender for the current market rate.

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Answered on 11/07/01, 7:18 pm


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