He also suggests that borrowers examine the new lender's commitment letter, so they understand the stipulations that need to be met for refinancing.
A Steven Troup, a Manhattan real estate lawyer, says the standard co-op sales contract provides that if a lender's commitment to make the loan is conditioned on obtaining an appraisal satisfactory to the lender, this is not considered a firm loan commitment until that condition is removed.
It also was not clear how Greece's lenders could expect commitments that Greek leaders honor the terms of the bailout when the leading parties in the governing coalition of Prime Minister Lucas Papademos were falling apart after Monday's vote on the unpopular measures.
This means that if a husband and wife sign a contract to buy a house, and the breadwinner dies after a mortgage commitment has been obtained, the surviving spouse and the decedent's estate could be required to go through with the deal -- or lose the deposit -- even if the mortgage lender withdraws the commitment.
In other words, Related and Oxford will not turn a profit on the office space but rather will use their tenants as de facto lenders, selling their commitments to cover the upfront costs of platform and building construction.
Romania, Serbia and Hungary have extracted commitments from lenders to maintain their exposure.
But there was no sign on Wednesday that Mr. Bush's plan would contain new commitments by lenders to help people refinance.
In court documents, the agency denied many of the company's assertions, stating that Michaels breached the agreement by failing to obtain commitments from lenders willing to invest in the project.
When the credit business hit a wall in July, Merrill got caught with commitments to lenders that it could not resell and complex debt instruments, called collateralized debt obligations, that deteriorated sharply in value.
But in July, the credit market collapsed and many Wall Street banks were caught with commitments to lenders that they could not resell and collateralized debt obligations that started to deteriorate sharply in value.
