Escrow delay, penalty?

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I am in CA, my loan has been approved, escrow is supposed to be closed last week. But the loan company notified me after the closing date that they needed to wait for one more signature to close my escrow. My purchase agreement said if I am not closed by 03/04/08, I'll charged 1/10*1% of purchase price. But it's not my fault that my loan company needs the sigature. They should have done this before closing date.

So my question is: will I still be penalized by this?

Escrow delay, penalty?

I think this is something that you should not be penazlied for. The loan company should have known the time frame for closing and know if your closing date was reasonable or not.

Contract the real estate agent and loan company ASAP.

Escrow delay, penalty?

They are charging you for a rate lock extension. It normally only costs .25% of the loan to extend for 15-30 days, depending on the lender. Call your mortgage company and call them out on it since they are probably trying to pocket the additional .75%.

Escrow delay, penalty?

I agree that the charge was for a rate lock extension. I don't think there is any rule that Borrower is not obligated to pay this.

For whatever reason for funding delay is, it's a penalty charged by investor (your final mortgage company whom you have to make your mortgage payment) to your lending company via SELLER AGREEMENT. To avoid penalty, lending company usually turn it around and charge the broker via BROKER AGREEMENT.

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Escrow delay, penalty?

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