Buyer Fell Through Bridge Loan
Having a home under contract and in escrow can feel safe, but sometimes home sales fall apart late in the sales process. If this has happened to you, you are not alone – over 21% of contracts termination in 2016 were due to a Buyer’s inability to get a mortgage. When your buyer’s financing fall through this often sets off a market domino effect where you then lose the ability to obtain financing to purchase a new home. Unless you’re in the situation to qualify for a new conventional loan and keep paying on your old loan (until your old house sells), you are at the mercy of the buyer’s lender.
However, you are not completely powerless. If you have your new dream home under a contingency contract and the buyer for your old home has fallen through, you can use our ‘Buyer Fell Through’ Bridge Loan program to help ensure you can secure your dream home. The bridge loan offered in this program allows you to close on the purchase of your new home while finding a new buyer for your old home.
With the ‘Buyer Fell Through’ Bridge Loan program, we consider the equity from your old home and allow expanded loan ratios to qualify you for a short-term bridge loan to purchase your new property. When your old home sells we then refinance you into a low-rate conventional loan and pay off the bridge loan.
Another strategy we recommend after a buyer falls through is that you immediately place the home you are selling back on the market and remove all pending-sale sign riders. Amid waiting for a new offer, ask us if we can help the Buyer of your house get a mortgage. We have a number of creative loan options and we have our own funds available to possibly help the Buyer whose financing fell through find a more appropriate loan option to recover the deal.
If your deal with the Buyer’s deal is unsalvageable, you should sign a cancellation of the contract and, if the financing fell apart after the Buyer’s time frame contingency, use their lost deposit money to improve your home and attract more attention in the market.
Even without having a Buyer for your old home, you can still purchase your dream home, despite the closing contingency, by using our ‘Buyer Fell Through’ Bridge Loan program. For more information on current market rates for bridge loans or information on how we can help when your buyer’s financing fell through, please click the button below and we will have Bridge Loan expert contact you right away.