Author Topic: Can I walk away after rate lock/intent to proceed?  (Read 205 times)

thorbjorn88

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Can I walk away after rate lock/intent to proceed?
« on: August 03, 2020, 04:03:05 PM »
I'm working on refinancing my primary residence/house hack. Currently I've signed an intent to proceed and a lock agreement with a lender which includes this language: "<lender> and Borrower agree that if the Borrower shall qualify for the loan applied for, both parties shall be obligated to close the loan in accordance with the terms of this agreement."

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When we started this process my house was labeled by the county as a duplex. I've since spoken with the assessor's office and gotten it changed to an SFR with attached guest house, which makes more sense in how it was built and better matches other properties in my area. This will obviously cause changes in my loan.

My current lender is very unresponsive and less than helpful. Another lender with whom I worked in the past couldn't help me refinance when my property was labeled a duplex but now that it's changed he can. I'd like to switch to the other lender. I was under the impression that until the loan was funded I could basically walk away and just loose whatever money I'd paid for appraisals etc. but that language sounds stronger than what I'd expect. Can I walk away?

secondcor521

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Re: Can I walk away after rate lock/intent to proceed?
« Reply #1 on: August 03, 2020, 06:03:54 PM »
Yes, you can walk away from a contract.  You can expect to suffer whatever consequences are listed in the contract terms for breech.  You in theory could also be sued by the lender for damages and in theory specific performance, but I doubt any lender would do bother doing that.  Your name will also be mud with that lender.