Legal Question in Real Estate Law in California

Buyer's Mortgage Company does not fund loan of single residential family house e

Buyer's Mortgage Company is from California. Buyer and Seller live in Wisconsin. Buyer has already moved into the house because Buyer is Seller's friend. Buyer and Seller have signed all closing paperwork yesterday (9/4/02). Seller has money due back to Seller and mortgage payoff of said house. Title company did not receive wire of money at closing. Seller was led to believe by Buyer's Mortgage Broker that it was anytime now that Title company would receive money. At the end of the day, Seller was told by Buyer's Mortgage Broker that Buyer's Mortgage Company has to have all original closing paperwork in their hands and that it is California Law. Today, as of noon central time, Buyer's Mortgage Company has received all original closing paperwork in their hands and Title Company and Seller still has not received funding. I am the Seller. Am I in deep trouble, stuck with a second house payment, but no house? Should I be seeking a lawyer now? Any advice would be much appreciated. Thank you


Asked on 9/04/02, 3:06 pm

1 Answer from Attorneys
Thomas Schober Schober Schober & Mitchell, S.C.

Re: Buyer's Mortgage Company does not fund loan of single residential family hou

The practice in most states, other than Wisconsin,

is to do all real estate closings in escrow. That

means that no funds are released until title is

transferred and recorded. Then title is updated.

Then the funds are released. That takes time, and even

more time when dealing with a California lender. I

would guess your deal will eventually "close", but

you may get hit with more daily interest and possibly

late charges, until your final payout is received.

If that hasn't happened by this coming Monday, I'd

see an attorney if I were you to be sure the rest is

legitimate.

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Answered on 9/04/02, 3:13 pm


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