How long does a mortgage lender have before they must release your loan, once you have requested this?
We are in Illinois, and I need to know the laws regarding this timeframe. The original lender said they could not refinance us at a more favorable rate, so we shopped and found another which could. We completed the paperwork, and made a written request that the mortgage be released to the new lender, yet the old company is seeming to stall. I understand they don’t want to lose the loan, and that every day (minute!) that they hold onto it, they make more money off of us, but it is over a week now. When we call them, they pleasantly tell us they are so sorry, but there is a delay in processing, and they hope it will take place "by the end of today" (for 4 days now). What is the law regarding this, and how do we proceed? I fear they will delay us so long, that our next payment TO THEM will be soon due. Thanks!
Thanks for those of you who have answered so far. Let me clarify just a bit-we HAVE completed all paperwork for the new loan, and been approved. All the final signings have been done and processed. The old lender is not cooperating to release the payoff amount nor the loan to the new lender, which is why we, as the borrowers, are trying to move the process along. Until the change is made, we are still obligated to the old lender, and they hold the mortgage as hostage.
You’re correct – they are just hanging on to your loan so they can make a little more profit off of you. And, unfortunately, there is not a lot you can do about it, short of suing them, which would almost certainly cost you more than just a few day’s extra interest. Also, their TEAM of lawyers could probably delay the issue in court for months, which would hardly be what you wanted.
However, there IS something you can easily do about this fairly common problem – just go through with your refinancing deal. Lenders do cooperate with each other so they will provide a payoff figure for the old loan to the new lender. Just close, and pay off the old loan. If there is no balance, they can/will hardly be able to charge you interest.
My sister just refinanced it took about 2 weeks and then there was a problem with the paperwork so they sent it in took about two more weeks but the old company was fine with that and they didnt have to make another payment.
References :
You’re correct – they are just hanging on to your loan so they can make a little more profit off of you. And, unfortunately, there is not a lot you can do about it, short of suing them, which would almost certainly cost you more than just a few day’s extra interest. Also, their TEAM of lawyers could probably delay the issue in court for months, which would hardly be what you wanted.
However, there IS something you can easily do about this fairly common problem – just go through with your refinancing deal. Lenders do cooperate with each other so they will provide a payoff figure for the old loan to the new lender. Just close, and pay off the old loan. If there is no balance, they can/will hardly be able to charge you interest.
References :
http://www.first-time-home-buying.net/mortgage-loan.html
If you are refinancing your lender will request payoff numbers from the current lender and they will respond. I am unsure why you are making this call. It is not normally initiated by you.
Here is some additional info. Hope this helps.
References :
Mortgage http://www.tomvoli.com/category/mortgage/
Lenders have different time frames to releasing information. Some send out payoff statement within 1-4 hours, some take 24 hours, some 48 hrs, some 72hrs and some lenders might even take 2 weeks. We ask our clients to check on-line when we are having difficulty receiving a payoff. Some lenders make ordering payoffs on-line available, easy and fast.
References :
what do you need them to release? Just fill out a new application with the company you are going to use.
References :
http://www.choicefinance.net/