What recourse do we have now that our closing date has gone past the date stated in our contract?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What recourse do we have now that our closing date has gone past the date stated in our contract?
This is of no fault of ours. We are the buyers and the underwriter is taking her time and has also asked at the very last minute, the night before closing for more paperwork. As we have accomidated and scurried around to get it done, not even sure if we could have, but being threatened that if we don’t we will not have a closing at all. We are now being told that it may be anywhere from 4 to 6 business days because they need to get the closing package out and order the wire. If I’m not mistaken, the wire happens after the closing. Yet we haven’t gotten the ok to close yet. I feel as though the end of this has been handled with gross negligence. And we have been harassed by the loan officer and underwriter.
Asked on August 20, 2016 under Real Estate Law, Connecticut
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Unfortunately, the lender is not a party to the contract and is not bound by the dates or terms thereof. Moreoever, a lender generally has no obligation to lend, and can take as long as it likes to commit to a loan, if it will grant the loan at all. So the lender is not liable for not making the loan committment yet, because it is not obligated to commit within any particular time frame, or to extend the loan at all. At the same time, however, you are obligated to the closing date in your contract, and can suffer the consequences for breaching it.
For future reference--and not just speaking as attorney, but also as speaking as someone who recently bought a new house and went through this--as unfair as it seems, you *must* set a closing date far enough in the future to acount for any and all possible delays in underwritng and closing the loan. You bear all the liabiltiy for a failure to get the loan in time; the lender bears none.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.