The Bank wants to Cancel the Loan

Got a letter from the bank last week. Apparently we are taking too long to draw down on the funds they agreed to lend us. We had applied for the loan in December and it had been approved in early January. The letter stated that unless we responded within the month with a “funding date” that the loan would be cancelled. Furthermore, if the “funding date” was more than a month away suitable evidence would need to be provided in support of the funding date.

A day or so later I received an email from the mortgage broker who had learned of the bank’s “cancellation letter” and wanted to assist in formulating a response. I guess she could see her commission disappearing off over the horizon. Anyway, she wrote an email to developer’s real estate agent asking for guidance on a settlement date. He responded that he wished he was able to provide a firm date but with the weather and not knowing the exact time frame for registration and titles it was hard to say. He thought that it should be settled or settling by the end of June. So I responded to the bank nominating June 30 as the “funding date” with a copy of the agent’s response as “evidence”. Worse case we will have to apply for the loan again.