Why is my refinance taking so long?

it's so true it's ridiculous. every loan is a nightmare waiting to happen, every processor is stressed to the max, every loan officer is stressed to the max, every lawyer, realtor, borrower are confused as can be.

i had a file sit in undewriting for 30 days before the file was cracked open! thanks be to God that it was a very clean file, and from that point to closing is only 2 weeks - it will close tomorrow. this for a paltry $99000 loan - what a glorious payday that will be.

These banks we're so overwhelmed from the drop in rates it created a large bottleneck affect. Before the rates dropped business was slow and banks we're in the process of layoffs and branch closings. All of a sudden the rates dropped and mortgage apps went through the roof and banks we're not simply prepared. The lender should extend the lock at no addt'l charge b/c of their delay. Don't worry the loan will get done it's just a matter of waiting for it. Patience is a virtue. When rates hit 50 year lows this is what you get!

fha did require 2 appraisals if you were taking cash out over 85% loan-to-value. since the cutoff for fha cashout is 85% eliminating the need of another appraisal. fannie and freddie appraisals are only good for 120 days so if you have a refinance thats taking longer than that then you may have to get another appraisal if you're in a soft market (basically everybody). they shouldn't charge you though for the second if its due to the lenders delay in processing.

Same thing is happening with my co-op refi thru chase...i locked in early march and got a high appraisal in April, well over what i thought it would appraise at. my credit score is over 750 and income is totally sufficient. every week my loan officer says she's hopeful that we will close this week. She's been saying that for 8 weeks. What is going on? I'm worried that I'm just going to loose my lock-in money and that nothing is going to come of this. totally frustrating.

Hi Kristin,

You should contact your loan officer and ask her to speed up the process so that your rate lock does not expire. If your rate lock expires, you will have to go for a new rate lock and as interest rates are increasing now, there are chances that you would be charged a higher interest rate.

Thanks

I'm in the processs of refinancing with BOA also. I was initially told that it would take 60 days, I called at the 60 day mark wondering what was going on because I hadn't received a closing date, my laon officer called back (with an attitude) saying they were backed up 90 + days. I'm at 75 days and I still haven't heard anything back!

I also have applied with BOA for Condo refinancing ... it is 65 days now, I am still nowhere close to end. I have very good credit score, appraisal came very good, LTV is 70%, Income over $250K, Loan close to $ 460K In other words, it is an ideal application. But still no end in sight, only got extension of lock -in rate. BOA, better wake up before all consumers avoid them.
Ram

Hi Ram!

Welcome to forums!

65 days is quite a long time. It is surprising to me why the lender is taking so much time to process your refinancing request. It would be better if you could look out for other lenders to refinance the property.

Feel free to ask if you've further queries.

Sussane

Sussane, If you read forums, 65 days is not a long time. In NY/NJ area they are taking 90 -120 days

i was at a closing yesterday afternoon (purchase). our contract was signed (short sale) on 4/27 and we were ready to close before the end of june - not too bad, considering...the bank's side (current owner/lender) wasn't ready - it took them another week-plus to get ready. fortunately, my borrower knows it wasn't us.

in speaking with the closing attorney, she mentioned that she'd closed one in june that had originated 8 months previously. she didn't say it was wells or chase or boa, but it wouldn't surprise me to find out it was yet a different lender. times are tough, and our investors are the culprit when it comes to understanding what all the delays are about.

quality control has become quality obsession - there's not enough time in the day to do all the tracking cross-checking they want done on a file any more. it's out of hand.

Well, I have been in the process of trying to refinance my home with Chase since January. It is not nearing the end of July......

I meant NOW nearing the end of July.

My wife and I locked in our rate of 4.75 on Feb 01, 2009 here we are July 23, 2009 and the underwriter is asking for our financial information again for the third time. We've already paid $400 for our appraisal (which the had completed Feb 16, 2009) and now who knows what's gonna happen. It seems every time my wife returns their call, they act as if it's an inconvenience.

We are not upside down and we have got quite a bit of equity in the house ($200k) and they hold our current loan... So can someone explain why it would take this long? Do I have any legal recourse?

Hi wango,

I think you should speak to the lender and check out what the issue exactly is. You can even involve a lawyer in this whole process. He can contact the lender on your behalf and will let you know about the exact cause of the delay.

Thanks

james, they have been speaking to the lender. that's why they came up here to ask our opinions as to what might be going on and when they might expect to get resolution. having a lawyer involved at this stage of things is not going to be beneficial - all they'll do is pay legal fees and still be in the same state, i think.

wango, you definitely deserve straight answers to your questions. if i am you, i will ask to speak to the highest-level person available and insist that i be put through so as to find out what is happening with your file.