In real estate, a buyer signs closing docs, the closing docs authorize the bank to fund the seller, right?

Question

In real estate, once a buyer signs closing docs, the closing docs authorize the bank to transfer fund to the seller, right? The buyer has no right to tell the bank not to fund the money, right? Thanks.

Answer 1

Is there a three day right of rescission on a second or HELOC being used as a purchase money loan?

If so, and depending if you are in a state that funds "wet" or "dry", you may have a wait of a few days.

In any case, the buyer is not in charge of loan funding, and they certainly have no power to order or deny funding subject to their whims.

Answer 2

Provided all lenders conditions have been met.

Many times a lender will provide closing docs and have them signed with conditions that are still OPEN ( to avoid a delay in closing). These conditions (which were supposed to be completed prior to this point) are now known as PRIOR TO FUNDING conditions and are the responsibility of the loan processor / borrower to complete in a timely manner. Usually, this is the reason for delays.

Tom Voli

www.gtofinancial.com

Answer 3

True story, I actually had this happen in a sale.

The buyer signed papers one day, then the next day went to the title company and told them she did not want the house. She also called her mortgage broker and told them.

The lender refused to send the money to the title company to fund because the buyer did not want to do the deal.

Keep this in mind: The deal is not done until you have them oney in your hand.

Answer 4

Yes, the bank is supposed to fund the seller. The only way they will not fund the money is if they have some reason to believe that it was a fraudulent transaction.

Answer 5

that's going to all be spelled out in the settlement. If there's a contingency with regard to the appraisal, the purchasers have an "out". in the event that they only arbitrarily desperate to not purchase, then the sellers get the earnest funds, that could desire to be in the palms of a real sources agent precise now. that's why you ought to comprehend all of the significant factors of the settlement.

Answer 6

Yea, but the buyer is under contract and obligated to sign unless they are being threatened or something. If you didnt do anything wrong to them and they are just getting cold feet, then you can sue for "specific performance" and a judge will order them to close.