Posted on: 05th Sep, 2007 08:50 am
question for an a6 expert. the first due date cannot be more than 2 months from the (keyword here) "extension of credit". would the extension of credit be the day it closes, or the day it funds?
The answer would be the day it funds.......
Cedric,
I feel the same way, however I have a lender looking at it as the closing day, not fundind day. Had a loan supposed to close today, and they said that the first due date should have been 10/1 in lieu of 11/1 and they never caught it. so, having to correct docs, and wait 3 more days....never had this happen before
I feel the same way, however I have a lender looking at it as the closing day, not fundind day. Had a loan supposed to close today, and they said that the first due date should have been 10/1 in lieu of 11/1 and they never caught it. so, having to correct docs, and wait 3 more days....never had this happen before
So the did earned interest in lieu of allowing for a month of interest to be added to your HUD......how much cash are you getting? It will be reduced by the number of interest days......
I didn't explain myself very well. Deal closed on 8/30/2007 as a cash out. Was to fund today. Odd days collected from 9/5/2007 ti 10/1/2007 with first payment due on 11/1/2007. Issue is that because it closed on 8/30/2007 they are saying that their payment can't be more than 2 months from the "closing" day, not funding day. I disagree with them, but anyways the way the law reads is can't be within 2 months of "extension of credit"...the lender is looking at the closing day as extension of credit, where I look at funding as extension of credit....anyways, kind of a pain and we are having to redo docs now...thanks for the repsonse though
Hi Wereol,
The law states that the payment can't be within 2 months of "extension of credit", that is the funding day. In that case, the lender cannot ask you for the payment as two months from 9/5/2007 to 11/1/2007 are not yet completed.
If the lender does not listen to it, you can take the help of a mortgage attorney and if required, take legal action against that lender.
The law states that the payment can't be within 2 months of "extension of credit", that is the funding day. In that case, the lender cannot ask you for the payment as two months from 9/5/2007 to 11/1/2007 are not yet completed.
If the lender does not listen to it, you can take the help of a mortgage attorney and if required, take legal action against that lender.
Hi Wereol,
Welcome to the forum.
The 1st payment date should be calculated from the funding day itself and not the closing when you sign on the loan documents.
Usually if a borrower wants to cancel a loan, he can do so as per the rescission rights. The rescission period starts after the loan documents are signed at closing and the lender cannot provide the funds until and unless the period is over.
Now, in your case, since the funds are already provided, therefore, you cannot cancel the loan. So, there's no point looking for a new lender currently. And, I don't think any legal action against the lender will be fruitful enough because you will ahve to deal with him when you make payments.
God bless you.
Samantha
Welcome to the forum.
The 1st payment date should be calculated from the funding day itself and not the closing when you sign on the loan documents.
Usually if a borrower wants to cancel a loan, he can do so as per the rescission rights. The rescission period starts after the loan documents are signed at closing and the lender cannot provide the funds until and unless the period is over.
Now, in your case, since the funds are already provided, therefore, you cannot cancel the loan. So, there's no point looking for a new lender currently. And, I don't think any legal action against the lender will be fruitful enough because you will ahve to deal with him when you make payments.
God bless you.
Samantha
