Lender Change term sheets right before closing?

[Rodney Roberts]

Trying to close a deal with lendingone and two before closing, they want to change the term sheet last minute. Is that possible.

[Jeff S.]

If this is a private/hard money loan,@Rodney Roberts, then yes, this is legal. Your lender has no obligation to follow through. I’d normally say this sucks and I’d call the lender any one of a hundred pejoratives. With all the current Coronavirus issues however, that caught everyone flatfooted, lenders are scrambling to identify terms that will keep them in business yet mitigate their risks.

If an experienced lender is telling you to stay away from a deal, you should always take heed. This could be Lending One’s way of telling you. On the other hand, they could also just bail on you, so this says at least they see some promise in you and your deal and have some integrity.

Near-term, the pendulum is going to swing to the widely conservative side until the dust settles a bit. You just got caught at the beginning, where no one has a clue what going to happen -- even in the short term.

Out of curiosity, what were the before and after terms, Rodney?