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

Answers:

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.


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