What Obligation Does a Bank Have to Close Escrow? (loan, refinance, loan)

[imcurious]

I am in the process of trying to refinance a loan. Initially I was told there would be 90 day escrow due to the bank's backlogs . . . I am two-plus month's into the process and was recently told it could take an additional six to eight months to close - again, due to their backlogs.

Do banks have any obligation to close by their escrow closing dates?

What rules govern this process?

Thank you.

[Pfhtex]

That's a little egregious, I haven't exceeded 30 days in a couple years. They can lean on any number of disclosures, reasons, "force majeure," you name it. Perhaps they can refund your monies and you can find an actual bank that is in business?

[TimtheGuy]

Originally Posted by imcurious

I am in the process of trying to refinance a loan. Initially I was told there would be 90 day escrow due to the bank's backlogs . . . I am two-plus month's into the process and was recently told it could take an additional six to eight months to close - again, due to their backlogs.

Do banks have any obligation to close by their escrow closing dates?

What rules govern this process?

Thank you.

I am guessing Bank of America?? They are the only operation I have ever heard of that can't close a refi in under 60 days. Can you take your loan to another lender or is it a case where the only one who will do it is your current servicer?

[dad2jules]

Fifth Third as well. Brokers usually get quicker turn times and they were at 4 months last year at one point.

[imcurious]

No - it's another mortgage bank . . . anyway, I guess the answer is that they have no obligation to close on time - the escrow closing date means nothing. Great. Thanks to those who responded.