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.
The North Dakota Extension of Loan Closing Date refers to a process where the closing date of a loan is extended for various reasons in the state of North Dakota. It allows borrowers and lenders to amend the original closing date specified in the loan agreement. This extension can be requested and granted in certain circumstances, ensuring better flexibility for both parties involved. There are two types of North Dakota Extension of Loan Closing Date: 1. Voluntary Extension: This type occurs when both the borrower and lender mutually agree to extend the loan closing date. It might be due to unforeseen circumstances such as delays in property inspections, appraisal issues, change of employment, or extended negotiations on the terms of the loan. By granting a voluntary extension, lenders show flexibility and understanding towards borrowers' difficulties, facilitating a smoother loan process. 2. Involuntary Extension: This type happens when external factors beyond the borrower's control halt or impede the loan closing process. Instances include delayed document processing, title issues, insurance complications, or the unavailability of important parties involved. Involuntary extensions are usually granted to ensure fairness and provide an opportunity to resolve any outstanding issues, avoiding premature closing and potential legal conflicts. It is worth noting that while an extension can offer benefits to all parties by allowing additional time, it may also result in extra costs, such as additional interest payments or fees associated with the extension process. Therefore, borrowers and lenders must consider the terms and conditions while deciding whether to pursue an extension of the loan closing date. In summary, the North Dakota Extension of Loan Closing Date offers a valuable option for borrowers and lenders to modify the loan closing date, whether voluntarily agreed upon or imposed due to unforeseen circumstances. By understanding the different types of extension and the potential implications, parties involved can make well-informed decisions that best meet their needs.
