If my bank’s loan commitment expires before closing, is the finance contingency still satisfied?

After the loan commitment expired, we decided we did not want to purchase the home. The bank’s commitment expires before closing. The loan commitment and the permission to use it were sent in different emails as well.

Asked on May 18, 2012 under Real Estate Law, Wisconsin


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whether or not the loan contingency provision on your presumed purchase contract has been waived or not by you depends upon if you have signed written waivers of such a contingency. Such a contingency in your contract to buy the property that you are writing about is distinct from your attempt to actually get a loan to buy the property that you are writing about.

If the bank's loan commitment expires before you are slated to close escrow, I would not waive the loan contingency provision in your purchase agreement in that with no loan to obtain, you will not be able to close escrow on the property you want to buy. I suggest that you consult further with a real estate attorney about your matter.

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.