While the ending isn't written yet, here's how it started.
TOG and began our home Re-Fi in January. We have lots of equity and just want the lower interest rate. We used the same lender we have now. We went to lock in our rate and they said "we're swamped, so instead of a 60 day lock, we're going to do a 75 day lock so we can close it". Fine. We locked, paid our lock fee and application fee and waited. And waited. And waited.
Finally in late Feb, a new person called and asked us for proof of income, proof of homeowners insurance, yada yada. We faxed everything within 24 hours. And waited. And waited.
Then in March, still another new person emailed and said they had to inspect the house. They needed it within 24 hours. No time for cleaning. Whatever. We had the inspector over. He said things looked great. And then, you guessed it... more waiting.
So on Wednesday, yet one more person contacted us. They emailed us to let us know they needed proof that we were still working. Could we send current pay stubs? Again. Oh, and by the way... the lock has expired, but we're still willing to close, "at the rate you locked at". Reaaalllly?
So I called and she actually answered. I told her that while I appreciated their willingness to close the loan (someday) at the previous rate, it was not our fault they let the lock expire. But since they did let it expire, we wanted to re-lock at current rates. Oh no, they don't allow that. If we wanted to re-lock we would a) lose our fees and have to pay new fees to re-lock and b) wait 90 days to re-lock and see what the rates were then.
Nice girl, but I told her I didn't think that sounded right and that I'd need to talk with someone above her. She referred me and I left a message. In the meantime, I called my step brother, who's VP of legal counsel for a large nationwide mortgage conglomerate (No, he's not affiliated with AIG and didn't cause the current crisis!). I just wanted to be sure there wasn't some wacky new federal regulation they were adhering to.
(I love my step brother. He's one of the nicest people on the planet. The unfortunate truth is, he gets paid to be an asshole. As legal consult on transactional law, his job is to make sure their transactions stay within the legal limits of the law and that they benefit his agency. Functionally, he says he spends a lot of time listening to BS and telling people how deals are going to be done. Sounds like a downer of a job to me.)
So my step brother started swearing as soon as I finished talking. His consensus... "You're done with them, Di. Go find a new lender and a new rate. Write them a letter, say "this". If they balk, call me. There's steps we can talk and I'll walk you through it. Don't worry that you're breaking a contract. They broke the contract when they failed to close the loan and they know it. They're going to do everything they can to guilt you into staying with them." And then there was some more &%$#* about what kind of a financial institution lets a lock expire and did I really want to do business with that kind of #*%&#@ institution.
Fast forward. The supervisor of loan production called me and said they were sticking with their position. I told her our position and that I felt they hadn't bargained in good faith. She said I wasn't bargaining in good faith by stepping away from the loan. It set me off a little. I told her that I (we) had complied with everything and because of their lack of action, I didn't have faith that they'd ever close the loan if I (we) stayed with them. She said she could pull my file and close the loan in two days if she wanted to. So I said I didn't believe her because if it were that easy they would have done so within the 75 days. Yada, yada. I ended the call by saying I'd discuss it with my husband but that if they wouldn't lock us at the current rates, we'd be pursuing the return of our fees since they failed to perform. She said she'd notify her boss and we hung up.
Yesterday, we locked with another institution. They had the loan on our previous house. In the meantime I've received multiple emails from the production supervisor trying to convince me to pay points from the January lock to get down to current rates. Yeah.
Sorry for the major dump. I'm just frazzled by the whole situation.
Now I have to write the stupid letter. And I have the feeling they're going to be toads about this and I'm going to need my step brother's help... Gah....