Now your down payment is trapped, while the seller of your new home still expects you to close on time.
One Failed Closing Can Trigger Another
When a sale and purchase are connected, the first closing often supplies the equity needed for the second. If the buyer requests an extension, cannot obtain financing or fails to complete the transaction, your purchase obligations do not automatically disappear.
Contact your real estate lawyer immediately. The lawyer can explain the buyer’s default, any extension and the risks of failing to complete your purchase. Mortgage financing cannot replace legal advice or guarantee either closing.
Can Bridge Financing Keep the Purchase Alive?
Traditional bridge financing usually depends on a firm sale expected to close. Once that sale has failed, a bank may no longer treat the proceeds as certain.
Lendworth may review Ontario bridge financing using the equity in your existing property, its mortgage payout, the new purchase price and a realistic repayment plan. Short-term financing may provide funds to complete the purchase while the original home is resold or the failed transaction is resolved.
If a larger mortgage is required on the new property, Lendworth may also assess private purchase financing. Approval depends on the properties, equity, down payment, legal position and exit strategy.
What Should You Provide?
Gather both purchase and sale agreements, mortgage statements, deposit records, closing figures and correspondence about the failed sale. Your lawyer should confirm whether an extension was requested, whether the agreement remains enforceable and whether the property can be relisted.
The financing needs a credible exit. That may be a new sale of the existing home, completion of the original transaction after an extension or refinancing when the sale proceeds become available.
If your sale failed and your purchase deadline is approaching, Lendworth’s urgent mortgage options can be reviewed before the second transaction is placed at risk.
Call Lendworth at 905-597-1225 or request a confidential mortgage review.
Your Equity Deserves More™.