So, you went out and found the house or condo of your dreams, and plunked down 5%, when you signed the purchase and sale contract, assuming you’d be able to find someone to buy your current home.
But, so far, no offers.
What are your options?
Back out of the deal to buy the new place, and forfeit your 5%.
Or, go ahead with the purchase, and carry your old and new mortgage loan.
Those are about your only choices.
In this market, I’d get your current property under agreement before going house hunting.
If you decide to go the bridge loan route, here’s some tips:
A Short Course in Bridge Loans – By Jay Romano, The New York Times