ready to close funds ready, but seller has to get city clearance how long can loan be valid until the funds are returned to the lender

Asked by akingz07, Los Angeles, CA Fri Feb 22, 2013

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David, , Los Angeles, CA
Wed Feb 27, 2013
You should contact your escrow company for the specifics.
0 votes
LuLu DeBolt, Agent, La Crescenta, CA
Tue Feb 26, 2013
check with the loan officer and escrow ...Get the city inspector to clear what ever needs to get clearance rigth away!
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Caroline Har…, Agent, Northridge, CA
Sun Feb 24, 2013
Usually if the loan doesn't fund in 3 days, title will return the funds to the lender. If that happens, chances are you will have to resign loan documents - but the deal should be safe (unless it's a short sale and you need to get an extension on your approval - then you should act quickly to request that). Please let me know if you have any more questions.

Caroline Harabedian
RE-Search Concept
8700 Reseda Blvd., Suite 213-B
Northridge, California 91324
(818) 967-9626 mobile
(818) 979-0226 fax
0 votes
Ron Escobar -…, Agent, Beverly Hills, CA
Fri Feb 22, 2013
Your question is not clear... did they fund the loan and the property/escrow is not ready to close? If so, it depends on your mortgage lender's policies... that would be a very uncomfortable position for them to be in... unless is renovation loan?

Best of luck!

0 votes
Shannon Sher…, Agent, Lawton, OK
Fri Feb 22, 2013
If the documents are already at the closing company and dated you normally have to close that day. But as long as your rate lock has not expired the lender can redo docs up till that day without a large hassle normally. But each lender is different.
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Steve Colvin, Agent, Laguna Niguel, CA
Fri Feb 22, 2013
First question is when does escrow close per contract? If past closing date I would contact lender immediately to go over rate lock and approval expiration.

Good luck

Steve Colvin
Premier Ca Realty
0 votes
Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Fri Feb 22, 2013
Keep in mind every day that wire is in your account, you are paying the interest.
Other issues include rate lock expiration and your loan documentation expiring and requiring updated materials.
I agree, a detailed conversation with your loan officer would be helpful to let you know where you stand with this.
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James Sanchez, Agent, Burbank, CA
Fri Feb 22, 2013
Usually the wire can only be out for 5 days. Talk to lender to make sure, but if not funds will be returned to lender and you will have to re draw docs ($195.00) is what they usually charge to re draw. Sounds like to me someone didn't do their homework to make sure things were ready to go and items were cleared.

0 votes
what about the rate? does that change
Flag Fri Feb 22, 2013
Jodi Gonzalez, Agent, Los Angeles, CA
Fri Feb 22, 2013
Call the loan officer securing your client's loan and ask him/her. It all depends on when the docs were drawn and what the first payment date is on the final loan docs.
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