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The subject of "bridge loans" has come up in my house recently. Our home is on the market (just for about a month now) and we found a house that the whole family loved in our new town. We made an offer on the new home with a "Sale of Property" contingency. The seller accepted with a 72 hour "bump" clause. In other words, they get to continue to take offers on the property and give us 72 hours notice if they want to accept a different offer. My realtor explained that during those 72 hours, I am supposed to consider things like carrying 2 mortgages or getting a bridge loan.
Well, you know how the rest of this story goes. We got our "bump notice" a few days ago because there are other buyers who do not have a Sale of Property contingency.
After researching bridge loans, I decided the wise move was to walk away. Yes, we all love the house...but there are other fish in the sea. Bridge loans may work in a sizzling market where you are quite sure you will only need the funds briefly... but our market is far from sizzling...plus many of them carry high interest rates and high fees if you need to extend the term.
We've decided just to wait til our house sells to make an offer on another place. It is not the fun thing to do as my husband will have to continue a long commute, but at least we'll be able to sleep well at night!
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