Legal Question in Real Estate Law in California

Re: Legally in how many day they have to fund a Loan?

If this is a new home purchase, there is no time allowed to rescind the loan. If you are refinancing, the recision period is 72 hours, not 7 days. Howevr, there is no set time in which a lender MUST fund the loan. Actually, they can withdraw their approval and never fund the loan if they determine that cirumstances have changed, such as one of the borrowers quiting thier job or buying a car.

Re: Legally in how many day they have to fund a Loan?

The lender's obligation to fund is a matter of private contract, not statute. If there is any obligation at all on the part of your lender, it will be found in the terms of the documents that have been exchanged.

Lenders are generally very cautious about making irrevocable, court-enforceable funding commitments in residential lending situations because new facts can develop (or come to light) at any time that might affect the lender's willingness to proceed.

An oral promise by a lender to make a loan secured by real estate would be extremely difficult to enforce. If you think there is something in a signed writing that commits the lender to fund, and they have not complied, you should ask an attorney for a free consultation to assess the strength of your case and the amount of damages, if any, you might recover.

A better approach is to be in close, frank communication with the lender's representatives so that you know and understand their thinking at all times. If you are experiencing a funding delay, there may be a valid reason, and knowing that reason can help you cope with it.

I have had private (non-institutional) lenders back out because they didn't have the funds they expected to have.

I have also worked with clients who obtained a substantial judgment due to a lender's bad-faith failure to complete funding of a promised loan.