I obtained a bridge loan on my primary…
I obtained a bridge loan on my primary residence through Pacific Private Money ( as of this posting, they are shut down earlier this month) to purchase another primary residence. The loan and purchase were based in part on a broker opinion of value prepared by Michael Milano, a local real estate broker who expected to list my original property and represent me on the purchase of the new home. The broker opinion of value on my original home turned out to be significantly higher than what buyers were willing to pay. Even after several price reductions, the original property did not sell at or near that opinion of value. Because of this, and the structure and timing of the bridge loan, I was unable to carry both properties. As a result, I ended up needing to sell both my original and new primary residences quickly to avoid foreclosure. After loan costs, fees, and the forced nature of the sales, I lost essentially all of the equity I believed I had in these homes. I would urge anyone considering a bridge loan to proceed with extreme caution, independently verify any valuations, and make sure they fully understand the risks and downside scenarios. In my case, I lost everything.”
By Ron L.