This form is a sample of an agreement to extend the time of a loan commitment in order to consummate a purchase of real property which will be security for the loan. In effect the loan applicant is asking for an extension of the date of closing set forth in the loan commitment or application.
Massachusetts Extension of Loan Closing Date allows borrowers to request an extension on the originally agreed upon date for finalizing their loan closing. This extension provides the borrower with additional time to complete necessary paperwork, secure funding, or address any issues that may have arisen during the loan approval process. The extension is typically requested by the borrower and approved by the lender, subject to certain conditions. In Massachusetts, there are different types of extensions that borrowers can consider, depending on their specific circumstances: 1. Standard Extension: This type of extension is commonly requested when the borrower needs more time to fulfill the loan requirements due to unexpected delays or challenges. It allows the borrower to postpone the loan closing date typically by a specified number of days agreed upon by both parties. 2. Financial Extension: Sometimes borrowers may face financial difficulties or encounter unexpected financial circumstances that can affect their ability to close the loan on time. In such cases, a financial extension can be requested, providing the borrower with more time to secure the necessary funds for the closing. 3. Title Extension: Certain issues related to the property's title can cause delays in the loan closing process. In such cases, a title extension can be utilized to allow the borrower and relevant parties to resolve any title issues prior to finalizing the loan. 4. Contingency Extension: If there are contingencies specified in the purchase and sale agreement, such as repairs or inspections that have not yet been completed, a contingency extension may be requested. This type of extension provides the borrower with an extended timeframe to fulfill these contingencies before closing the loan. 5. Force Mature Extension: In exceptional circumstances, such as natural disasters, pandemics, or other emergencies, a force majeure extension can be requested. This type of extension accounts for unforeseen circumstances that may prevent the borrower from completing the loan closing on time. It is important to note that each extension type may have specific requirements, deadlines, and associated fees. Borrowers should carefully review their loan agreements, consult with their lenders or legal advisors, and formally request an extension in accordance with the established procedures to ensure a smooth and properly documented extension process.
