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.
Rhode Island Extension of Loan Closing Date refers to a legal provision that allows borrowers and lenders to extend the scheduled closing date for a loan transaction in the state of Rhode Island. This extension provides flexibility to both parties involved in the loan process, accommodating unforeseen circumstances or delays that might arise during the closing process. In Rhode Island, there are different types of extensions of the loan closing date available to borrowers and lenders, each serving specific purposes: 1. General Extension: This type of extension is granted when there is a need to push back the original loan closing date due to various factors such as delays in completing required paperwork, unresolved title issues, or unexpected personal events that might affect the borrower's ability to close the loan on time. The general extension allows additional time for the borrower and lender to complete the necessary tasks and finalize the loan transaction. 2. Force Mature Extension: A force majeure extension is authorized when an unforeseen event occurs that significantly impacts the loan closing process. Events such as natural disasters, acts of terrorism, or other uncontrollable circumstances beyond the control of the parties involved can lead to delays in closing. This extension provides the necessary flexibility to accommodate such force majeure events and prevent any adverse consequences. 3. Title Issue Extension: In situations where title issues arise during the loan closing process, such as discovering a lien, encumbrance, or dispute, a title issue extension can be requested. This extension allows the borrower and lender to address and resolve these title issues before proceeding with the loan closing, ensuring that the property's title is clear and marketable. 4. Financing Contingency Extension: When a loan is contingent upon the borrower securing adequate financing, a financing contingency extension may be granted. This extension provides additional time for the borrower to secure the necessary financing to complete the loan transaction. It is common for borrowers to request this extension to explore alternative financing options or address any issues that arise during the loan approval process. To request an extension of the loan closing date in Rhode Island, borrowers typically need to notify their lender and provide a valid reason for the delay. Lenders will review the request and determine whether an extension is warranted based on the circumstances presented. It is important to note that while extensions provide flexibility, both lenders and borrowers should work diligently to minimize any delays to avoid potential financial and contractual complications.
