Can a commercial lender in the state of NY not wire the funds to the borrower after the having received all the signed closing docs?
To be spesific, I'm talking about a business loan.
- EastLv 41 month ago
If the lender also sent its signature pages to the borrower AND released its signature pages from escrow AND all closing and funding conditions had been satisfied (e.g., all financial info had been provided by the borrower and was satisfactory to the lender, and all of the other paperwork required for the closing had been done and was acceptable to the lender), then no.
But it's likely that there is enough "fluff" in the closing conditions to allow the lender to back out.
If all of the steps in the first paragraph are met and the loan agreement states that the lender has to fund (not "may" fund), then it's a breach of contract for the lender not to fund.
- A.J.Lv 71 month ago
That's not the process of closing a real estate deal in NY State as I remember it. There is always a closing office agent. Almost always, attorneys are present. The accounting is done, forms are prepared, and the agent distributes the money. The lender gets the money to the agent who gives the seller their share of it. The money doesn't go to the borrower at all.
The money is already distributed before the paperwork is copied and registered and distributed.