I don't think so, Dan. Read it again...it is kinda odd, the example they give. For it to be temporary, it has to be replaced with perm financing...the timeline they give is not what you have outlined above...but is missing the biggest part of the picture, IMHO because exactly what is happening during the gap...no seller is going to wait around on the end-game like they have portrayed in that example.
'bridge' loan for down payment to be paid with sale of current home and THEN permanent financing for new home is obtained.
I believe what they INTENDED was...an equity loan was made on the current home to enable them to purchase the new home. Once the current home sells and the equity loan is paid, permanent financing of the net amount will be done on the new home.
The way I see most bridges done is by taking a lien of current and future home in lieu of a DP. Once current home sells, net mortgage is financed longer term.
Realtors hate it because of the ROR aspect.
The rare occasions where they intend [hope] to pay the new home in full, I consider short-term, not temp
Last edited by RR Joker; 03/14/17 04:00 PM.
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My opinion only. Not legal advice.
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