[zoltanhaji]

In contract to buy home in Vegas and sell a home back east...problem is scheduled to close purchase of new home before closing my sale by 21 days (both deals are solid and investment company selling Vegas home won't budge on closing date)...in the new world of banking where tax dollar bailouts are the norm, banks have tightened the purse strings and won't lend to me without first selling my home...any ideas? Few years back, lenders tell me this type of deal was no problem, now apparently bridge loans no longer exist to cover this type of situation.

[jjameson922]

You would not want to get involved with a bridge loan for only 21 days even if they did now exist. Think of the costs you would incur just to borrow money for 3 weeks. If the closing on the LV house is before the house back east and you do not have the money, you cannot perform. If you cannot perform, you breach the contract. Is your realtor in LV aware of this problem? I would think that seller, realizing you need 3 more weeks, would become unavailable for the date scheduled for their closing because if they don't postpone the closing, the house will come back on the market and neither they nor their realtor want that process to begin all over again. If there is no leverage there, I would suggest you seek a short term 3 week loan, not a mortgage, from your local bank if your credit will handle it. If not, any way to get a personal loan for 3 weeks? Third, any way to push up the closing on the house in the east by a few weeks?

[Daddys///M3]

Originally Posted by jjameson922

You would not want to get involved with a bridge loan for only 21 days even if they did now exist. Think of the costs you would incur just to borrow money for 3 weeks. If the closing on the LV house is before the house back east and you do not have the money, you cannot perform. If you cannot perform, you breach the contract. Is your realtor in LV aware of this problem? I would think that seller, realizing you need 3 more weeks, would become unavailable for the date scheduled for their closing because if they don't postpone the closing, the house will come back on the market and neither they nor their realtor want that process to begin all over again. If there is no leverage there, I would suggest you seek a short term 3 week loan, not a mortgage, from your local bank if your credit will handle it. If not, any way to get a personal loan for 3 weeks? Third, any way to push up the closing on the house in the east by a few weeks?

Actually I don't believe that this will be an option. If the proceeds from the sale back east are needed as cash to close then a short term loan may not even be allowable, depending on the type of loan program this is. For the most part, lenders want to see any cash required to close sourced and seasoned. In other words they want to see it in the bank and they want to see it there for 60 days. Obviously proceeds from a home sale are usable as the equity in the current home is sourced and seasoned. Even if it is allowable, it will have to be included in the debt to income ratios, which may or may not be a problem.

My question is why would you go into contract on the new place knowing that the old place would not close in time? This should have been addressed in the offer/counter offer phase of the dealings.

[jjameson922]

Good point. I'll have to add that one to my vocabulary; "seasoned money."