How long does a mortgage lender have before they must release your loan, once you have requested this?

Written By: admin on June 24, 2009 One Comment

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 ancient company is seeming to stall. I know 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 dread 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 ancient 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 go the process along. Until the change is made, we are still obligated to the ancient lender, and they hold the mortgage as hostage.

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Tags: beale, borrowers, bottom line, college loans, crash, due thanks, existing home sales, favorable rate, hostage, joshua, journey, mace, money, moroccan, mortgage, paperwork, quot, samosa, student loan borrowers, timeframe, unemployed loans, usa funds, vegan

One Response to “How long does a mortgage lender have before they must release your loan, once you have requested this?”

PLS on: 24 June 2009 at 2:29 am

You're right – they are just hanging on to your loan so they can make a small more profit off of you. And, unfortunately, there is not a lot you can do about it, small of suing them, which would nearly 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.

But, there IS something you can easily do about this honestly common problem – just go through with your refinancing deal. Lenders do cooperate with each other so they will provide a payoff figure for the ancient loan to the new lender. Just close, and pay off the ancient loan. If there is no balance, they can/will hardly be able to charge you interest.

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How long does a mortgage lender have before they must release your loan, once you have requested this?

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