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The week I had to explain a bridge loan to my parents in 2008

It was October, right after the market really started to drop. My folks were selling their old place in Phoenix to move, but the buyer's financing fell through at the last minute. They called me panicking because their new house closing was in 10 days. I spent three hours on the phone walking them through how a short-term bridge loan could cover the gap, using the equity from the old house as collateral. The whole thing felt so much more stressful back then because nobody was sure what any bank would do next. Has anyone else had to set up a bridge loan during a really shaky market time?
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3 Comments
kevin_harris78
The 2008 bridge loan panic always seemed a bit overblown to me.
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irismartinez
Trying to explain a bridge loan made me feel like a confused toddler explaining a toaster.
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faithmurray
Yeah, "nobody was sure what any bank would do next" really sums it up. We had a client in a similar spot around then, trying to buy before selling their old condo. The hard part wasn't explaining the loan, it was finding a lender who would actually commit to the terms without changing them at the last second.
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