Legal Question in Real Estate Law in California

Inadvertent error causing rate lock to expire

California mortgage lender (non-broker license) locks rate for borrower for 30 days. Loan is processed and documents submitted to escrow to get borrower's signature with 2 days left in lock period. Escrow somehow has in its records a wrong address for borrower that may have been fault of lender. This causes delay in delivery of documents to borrower and causes rate lock to expire. Borrower now upset because new prevailing rates are higher and believes lock expiration is fault of lender. Absent writings that describe and disclose terms of rate lock and possible risks associated with delays, etc., does borrower have case against lender for bad faith, negligent misrep., breach of contract, and/or other? Any California statutes, rules or case law that address lender disclosure duties and effect of delays related to rate locks? Is borrowers expected ''oral account'' of alleged events and reliance on alleged ''oral agreements'' barred by statute of frauds because rate lock involves real estate transaction? Thanks for any advice.


Asked on 7/16/03, 9:59 pm

1 Answer from Attorneys
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Inadvertent error causing rate lock to expire

If it is due to lender's negligence then you have a cause of action for negligence. What is your basis for the other theories? Call me directly at (619) 222-3504.

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Answered on 7/17/03, 11:54 am


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