Legal Question in Real Estate Law in California

Right? No. If the lender approved the loan, all the loan and escrow paperwork is completed, and escrow is simply waiting for funds from the lender to be delivered in order to close escrow, then contact the lender and find out why this is happening.

I pretty much agree with Mr. Nelson. However, it should be pointed out that most commitments to lend are conditional, and a typical condition is that all the facts and circumstances that the lender is relying upon such as the creditworthiness of the borrower and the value of the collateral remain as good at the closing as at the time of the application, or the commitment to lend. Lenders generally do some last-minute confirmations just before transferring the loan funds to escrow, and they may, and justifiably, hold up the money if any problem is detected.

Another situation involves small, non-institutional lenders such as family trust funds, small-business pension funds, investment partnerships, or hard-money loan brokers. These lenders often try to re-invest funds from specific other existing loans that are supposedly being paid off. Sometimes they don't allow enough time for loan X to be paid before loan Y needs to be funded. Also, in dealing with hard-money loan brokers, sometimes the broker's money source has its own problems, or decides it doesn't like the loan.

The lender, broker or other intermediary owes you a full and immediate explanation. The funding delay could be due to any of several reasons, many of which aren't your fault.

Right? No. Legal? 99% chance it is entirely legal.