We made a 12 month bridge loan to a couple- taking as collateral their current primary residence and their partially completed retirement home (which once complete will be their new primary residence). Both properties at the time of the loan were owned free and clear and the intention was to pay-off the loan with the proceeds from the sale of their house or a refinance of the retirement home. The retirement home is now complete, they are living in it and the time is up... the problem, the house, due to the market, has not sold... Lender wants to do a change in terms for another 12 months to give time to sell the home.
My question, just how many times can you do a change in terms... without it seeming to a regulator like you are actually doing long term financing. One other suggestion from yet another lender is to modifiy the loan for another 4 years...again using a change in terms...
My preference is to refinance this, disclose and complete the long term financing.. however, I am getting push back from the loan folks..
Any suggestions ???