real estate lawyer near me

What is a Bridge Loan?

BRIDGE LOAN

A Bridge Loan allows for short term financing. Generally, this is used if you have bought a new home but your old home that you’re living is scheduled to close at a later date.

As a real estate lawyer I often recommend that people obtain a Bridge Loan. Depending on the circumstances.

For example, Homer lives at 123 Springfield Way. Homer has now purchased a new home being 987 Bedrock Place. The closing date for his new home is June 1, 2020 (assuming this is a weekday). However, the closing date for his current home 123 Springfield Way is June 10, 2020 (assuming this is a weekday).

Homer is not independently wealthy. As such, the only way he can buy his new place is having to sell his hold place. Therefore, his mortgage company will provide him with enough money to buy his new place. But since he his closing date for his current home will happen after. He will need to “bridge” the gap in financing.

Mortgage companies as a result. Mortgage companies will provide short term financing or in laymen terms a Bridge Loan.

In a separate blog post I discussed why you shouldn’t buy and sell the same day.

Don’t Get Stressed

Often a realtor may suggest that you should buy and sell your home the same day. This isn’t always preferred.

If you require a Bridge Loan speak to your mortgage company or bank in advance.

If you need a real estate lawyer call my office 416-505-4901

WHY YOU SHOULDN’T SCHEDULE THE SALE OF YOUR HOME AND PURCHASE OF YOUR HOME THE SAME DAY

Don't Buy and Sell the same day

Many people will schedule the sale of their home on the same day as the purchase of their new home. There are many reasons why as a real estate lawyer we strongly advise against this.

MOVING IS STRESSFUL

Moving is always tough. Children and pets can make it even more stressful. If you are selling your home and moving into your new home you will have to complete the move in one day. Even when having prepared in advance this can be tough. Remember, you have no place to shift your boxes. You can only move into your new home once you are officially the owner.

WHAT IF YOU DON’T GET FUNDING IN TIME

Mortage companies are notorious for not releasing mortgage funds in time. If your real estate lawyer does not receive the funds from your mortgage company in time. Your real estate lawyer will be unable to close the transaction. That means. You can’t move into your new home.

DELAYS

Anything can happen on the day of. I had one client whose car broke down on the day of her sale and purchase. When we finally closed the transaction she was unable to pick the key to her new place. As such, she was stranded. This is just one example of what can happen.

WHAT IF THE PERSON BUYING YOUR HOME DOESN’T GET FUNDING

In the situation mentioned above what if you don’t get funding in time or in the situation where the purchaser of your home doesn’t get funding in time. Either of these situations can create a domino affect. For example, your home is for sale. You plan on buying your new home from a portion of the proceeds of your sale and a portion will be from your mortgage company.

If the person buying your home doesn’t get funding in time. It means you can’t buy your new home. If the people you are buying from were waiting on you etc., etc.,

HOW DO YOU AVOID THIS?

Don’t schedule your purchase and sale for the same day.
Have a back-up plan if you can’t move in storage facility etc., yes it sucks.
Look into a Bridge Loan when you are negotating your loan.

WHAT IS A BRIDGE LOAN

A Bridge Loan is quite frankly the most efficient method to use. In these situations. Folks will schedule their purchase to close prior to the sale of their home. For example, you’ve scheduled the purchase of your new home for May 15, 2020 (assuming this is a weekday). You can schedule the sale of your home for whatever suits you. Some of my real estate clients will obtain a Bridge Loan for one day, others for maybe a week.

Essentially, what happens is the Bridge Loan bridges for the mortgage you have on the property you are selling. Frequently, the cost for Bridge Loan can be very minimal depending on how long you are keeping it. It can be as low as $30.00. The cost of the Bridge Loan will be well worth it.

You can essentially keep your current home and start moving your items over to the new place first. You can move into your new place. Get a good night’s rest and continue to the move the following day.

DO YOU NEED A REAL ESTATE LAWYER?

Call my office I am a real estate lawyer servicing Burlington, Oakville, Milton, Hamilton and the Greater Toronto Area

Why you should think twice before buying a home with a friend.

It seems like the perfect opportunity. Two or more people decide to pool their funds to purchase a property. Whether that will be for a property to live in or for investment this has the potential for great financial return. It also, unfortunately can have terrible repercussions.

A prudent real estate lawyer will ensure that some of the potential pitfalls can be avoided.

Who will be on title?

The parties should decide who will be on title. Perhaps for credit reasons or personal reasons a party may not want to be on title. If that is the case, for the party not on title. They must ensure they have taken steps to ensure they can preserve their interest in the property. For the purposes of the Ontario government. If you’re not on title. It’s not your home.

Consult with a real estate lawyer first regarding the issue of title.

How will you take ownership? Tenants in Common.

Typically, spouses or family members may take title in the form of joint tenants or tenants in common. Both options have very different consequences when it comes to estate law. For the most part if you are purchasing with a friend, acquaintance or a stranger through some on-line site. The parties must ascertain what percentage of shares each party will have in the home.

Personal Issues

Ensure that the purchasers don’t have any personal issues that can affect the new property to be purchased. For example, if one of the purchases is married. Their spouse may have an interest in the home. If the parties split up. They could end up contesting their share in family court.

Another issue that could happen is if one of the purchasers ends up running into financial issues. For example, they are sued or end up having a civil judgement rendered against them. The party with the judgment may decide to place a lien on the property. As such, the party not affected is suddenly faced with a home that has a lien registered that becomes their responsibility as well.

There are many potential personal issues that can seriously affect a joint venture for the purchase of a home. Ensure you speak with a real estate lawyer first before embarking on such a transaction.

Who gets to sell?

One of the biggest issues ends up being who gets to sell? What if one party wants to sell the property for whatever reason. Perhaps they need money. The other party may not want to sell. Without any formal written agreement prior to, no party can exercise any rights for the sale without the other. In some scenarios one party may state they wish to retain ownership and will pay the other out. In those cases, ascertaining the value of the home may be contested. As the party looking to pay out will obviously assign a lower value to the home.

For the reasons above its very important to think twice before getting together with folks and purchasing a property. It’s strongly recommended that the parties speak with a real estate lawyer first.

Real Estate Lawyer Near me

Call my office 416-505-4901

REFINANCING AND DEBT

Refinancing is a great way to eliminate your debt. This past summer as a real estate lawyer I handled many refinances. It was interesting to see that in some cases I had couples who were paying close to $10,000 in debt a month. A great deal of this has to do with hefty credit card bills and multiple lines of credits.

When refinancing mortgage companies will provide the borrower with a sum that is not only enough to pay off their current mortgage but also their debts. In fact, in almost all cases mortgage companies will make it a condition to pay off the debts.

In some of these couples situations who were paying close to $10,000 a month, with the refinance their monthly payment was $3000.

Not only were they able to sleep easier but it felt good knowing all that debt was paid off. The new mortgage company simply registers the sum against the property.

If you’re thinking of refinancing please call my office at 416-505-4901

REAL ESTATE LAWYER NEAR ME, BURLINGTON, OAKVILLE, MILTON

My address is 901 Guelph Line, Burlington.

You can also call or text at 416-505-4901

Phone Number:	416-505-4901
Email:	ray@rehankhalil.com
Address:	901 Guelph Line, Burlington, ON