Legal Question in Real Estate Law in California

Interest rates and locking

I started the refinancing of my home @ June of 2003. The loan processor said I was locked in at 5%.

I just got a call from the lender , 08/07/03 ( not my loan processor ) saying that they had no record of my loan being locked at 5%. The processor that I had been working with was no where to be found. The lender was prepared to offer me another deal but at a higher interest rate...****NOTE...interest rates recently spike upwards @ 1 week before I got this call saying there was a problem with my loan. I am assuming a motive to make this call to me was the recent rise in interest rates. The lender also told me that the loan processor should have never told me I was locked at 5% because it never really was locked and his incompetence had delayed the loan approval......thus allowing higher interest rates to become a factor.

IS THERE ANYTHING I CAN DO AGAINST THIS COMPANY. THEIR INCOMPETENCE HAS COST ME 10'S OF THOUSANDS OF DOLLARS....AS I WILL NOT BE ABLE TO REFINANCE AT THE PROMISED 5%

Thank You

--name removed--L. Barnhill


Asked on 8/09/03, 7:46 am

1 Answer from Attorneys
H.M. Torrey The Law Offices of H.M. Torrey

Re: Interest rates and locking

i certainly empathize with your situation. feel free to email me directly for a free consultation/evaluation of your case. please let me know if you have anything in writing regarding this 5% locked in interest rate, witnesses to the loan processor's statements, location of the loan processing company, etc..any useful and relevant factual information that helps prove your case.

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Answered on 8/09/03, 1:04 pm


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