Legal Question in Real Estate Law in California

Re: Can a seller back out of the deal if the lender failed to produce loan docs

You are not alone this is happened to thousands of people over the years. If I interpret your question correctly yes, you will have to sign an extension of escrow. No uniter is not necessarily liable in the question is what your damages? There's a whole string of events that may cause a lender not to get the package in in a timely manner. I'm not justifying the lenders say you to meet the timetable but I am telling you that there are more factors in this thing just "a lender" not doing something correctly. It isn't you that has to stay on top of this butted issue or Realtor, where is the key/he and what are they doing it this point in time. Are they contact with a lender and white in the notice earlier. Additionally, with a good escrow agent you can sometimes have this problem cured before it even exists or understand that you need an extension. I have been practicing law in this legal area for over 30 years and understand your problem well. And yes the seller can pull out of the deal at this point if i understand your question correctly but hopefully and ususally won't if they are not damaged by the problem. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000.

Re: Can a seller back out of the deal if the lender failed to produce loan docs

Greetings,

Your question is short on facts, however,

1) I think you have to sign the extension if your intention is to follow through with the deal.

2) I cannot determine if the lender would be held liable. What was your agreement with the lender? Verbal? Best efforts? Does the other side agree to the extension in anticipation of the contingencies being removed? Is it your failure to sign the extension which is preventing the close? If you sign you lose 17 days. Maybe you can sue for that after you close... Probably not much though, hotel cost, commute... Or does the other side now want to pull out of the deal -- i.e., breach? Do you have a written assurance from the lender?