Does a buyer have until closing to obtain a loan or can the seller cancel the contract if the buyer does not have one on the loan objection date?
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Does a buyer have until closing to obtain a loan or can the seller cancel the contract if the buyer does not have one on the loan objection date?
I am the seller of my home and I do have an agent. However, it has been a complete disaster and she ONLY cares about her commission. New Link Destination
make a long story short we no longer have any communication because I had to hire an attorney to help me. I want this contract cancelled I don’t want my agent or
her horrible managing broker to get a dime of my, however I know that I cannot do it without repercussions. I was notified a week ago that they lost their
financing due to the buyers of their home falling through. They put their home back on the market, their loan objection date is 11/12 and our closing date is 12/06. If they do not get a loan by 01/12 is the contract cancelled? Or do they have until our closing date of 12/06 to obtain a loan? This is all so confusing. I dont know if I should continue packing or prepare to put it back on the market.
I do not want this sale to go through so if missing this loan objection deadline cancels the contract I would be ecstatic.
Asked on November 11, 2018 under Real Estate Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
If by "loan objection date" you mean the date they could pull out if they don't have financing (usually called the "finance contingency date"), then YOU as seller cannot cancel on that date. Rather, that date is for them to cancel if they want; but they could also choose to not pull out or cancel given the chance, and take their chances on whether they can get financing or otherwise come up with the money.
If the 11/12 date you refer to is what we describe above, then they have until the closing date to be able to finance the purchase, and you cannot terminate before then.
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