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Subject:  Re: Chase no longer issues commitment letters? Date:  7/3/2013  8:37 PM
Author:  Dwdonhoff Number:  125723 of 128866

Hi Kmart,

Is this true? Does Chase no longer do loan commitments?? This smells fishy...
Sounds more to me like a typically confused real estate agent.

An amazingly high percentage of realtors (even after years of 'experience') assume that a "loan commitment letter" actually means that the lender has irreversibly committed to funding a loan... which could not possibly be further from the truth (and never has been the truth.)

In reality, lenders issue "CONDITIONAL loan commitment letters" which generally say, in very CYA language, "we *may* fund up to $X for this purchase, as long as the following list of conditions are sufficiently satisfied..."

Then there is a "conditions" or "stipulations" list that may run up to 50 items, or more... always including "and/or any additional conditions determined upon review."

In essence, a "commitment" is only final when the very last condition is satisfied... and you know what that very last condition always is?
> Closing agent's certification of proper funds distribution

In other words... the 'commitment' is only reliably final when the checks clear, regardless what language there is in the lender's commitment letters.

Dave Donhoff
Leverage Planner
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