What happens to the contract if the bank has not funded our loan and it is 6 days after the settlement papers have been signed by me and by the selle?

Asked by bj jackson, Los Angeles, CA Tue Jun 11, 2013

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Brad Korb, Agent, Burbank, CA
Thu Jun 13, 2013
I think there is an issue with your lender,there must be something they don't like about the paperwork .You should reach out to the banks manager & your real estate agent to put heat on the lender .Good Luck !
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Gail Mercedes…, Agent, Los Angeles, CA
Wed Jun 12, 2013
Your still under contract but why is the bank not funding the loan? Is the bank re-examining loan or is there addition items bank need for funding? I would have Realtor contact lender and find out why not funding. Are there outstanding contingencies that the buyer or seller can resolve?

Gail Mercedes Cole
EXP Realty
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Douglas Perez…, Home Buyer, Los Angeles, CA
Tue Jun 11, 2013
Your contract still is enforceable by mutual agreement.

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carlos parra…, Other Pro, Monrovia, CA
Tue Jun 11, 2013
If you have not received Notice to perform you probably still have time to get the Bank to fund. Why is the Bank not funding is the bigger question.
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Ron Thomas, Agent, Fresno, CA
Tue Jun 11, 2013
I want to start with the first thing:
How do you know the Bank has not been funded?
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Caroline Har…, Agent, Northridge, CA
Tue Jun 11, 2013
I don't know what you mean by "settlement papers". The loan documents usually have an expiration date of 3 business days so you might have to resign loan docs if it's been 6 days since then. Other than that, there are a few other important items that matter here as far as your close of escrow date, contingency periods and what "settlement papers" you and seller sign - whether they are loan docs or disclosures are different from contingency removals and notice to perform.

Please feel free to call me to discuss.

Caroline Harabedian
RE-Search Concept
8700 Reseda Blvd., Suite 213-B
Northridge, California 91324
(818) 967-9626 mobile
(818) 979-0226 fax
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Amanda Weier, Agent, Encino, CA
Tue Jun 11, 2013
I would need to know a bit more about the terms of the contract you signed, but unless your loan contingency period extends up until the bank is able to fund, if there's been no communication between parties indicating that an extension of the escrow period is required, a Seller could trigger what is called a 'notice-to-perform' and failure to perform the requested action (in this case failure to close) could result in the Seller having the right to cancel and keep your deposit. Do you know the reason for the delay in funding by the bank? Assuming the bank still intends to fund and that the cause of the delay is one that can be worked out before your loan docs expire, your agent can (and should) get an extension request signed by the Seller so that there is no chance of your deposit being put at risk.
Hope that helps and good luck!
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