In 2008 we made a bridge loan (which is exempt from RESPA as temporary financing). In 2009 we did a Change in Terms to extend it for 1 year because the house has not sold. Now, in 2010, we want to do another Change in Terms to extend it for one more year. Nothing has changed except the maturity date. Source of repayment remains the same (sale of the home). Are we still OK treating this as temporary financing?

I have the same issues as you... it is very difficult for me to continue to treat a loan as "temporary financing" .. but at the same time, when you extended the loan it was your understanding that it would be repaid from the sale of the home... So I have the same question.. truely, how long can a bridge loan be treated as a bridge loan? Forever??? Sorry, I don't have a concise answer, but I have started to tell our sales folks to have serious discussions with their clients on finding other arrangements to start paying back the loan (other loan products)unless there is a sales agreement or committment on their home.

It is still temporary.