Twitter summary:
- People buy a new house (Brampton) March 2022 with a 90 day closing $1.9M purchase price
- Sell their old home FIRM $1.56M also long closing
- Need a 55 Day Bridge Loan for because new house closes first and old house 55 days later
- CIBC ponies up $1.9M which is a $1.38M mortgage plus the Bridge
- New Home purchase closes BUT Old House sale FAILS 55 days later
- Sweet Jaysus, what a mess, time to Re-list sell fast
- Now the total fckery begins: the value of both properties has FALLEN
- But Seller keeps Listing at $1.5M+ on old house because they need proceeds to pay off the Bridge Loan
- Finally when they call me: they have decided to drop to $1.35M to sell
- But wait it gets worse
- Because there are 2 mortgages AND a Bridge Loan to pay (nearby 9% Interest on the $500K Bridge) the owners took out a $120K Private Second Mortgage just to keep payments going
- Now they can sell old house for $1.35M pay off the Bank First Mortgage and Private on old but SHORT
- 335K to pay off the Bridge on New House
- Come to us looking for a Private Second to go to likely 96% Loan to Value on the New House to pay off the CIBC Bridge
- That's never going to happen
- Total Disaster
- Maybe the most interesting thing they said was: CIBC is very patient
- They say CIBC has a few of these all the GTA and they "Understand the problem"
- No one should call them reckless or dumb, these poor people just got caught in the WORST possible moment in time
- Likely both homes will need to be sold and all equity lost and likely still owe CIBC
https://twitter.com/ronmortgageguy/status/1630574280202174464?s=46&t=qmLsFYDVYFOl9AZgOTXXIw 
