The Christmas Bridge

Scrooge and Tiny Tim

One cold and snowy night, Bob Cratchit was wondering how he could purchase a new home for his family by Christmas.  Not just any home, but one that would surely be perfect for Tiny Tim and his wife – a dream come true.

Their current home was fine, but space was cramped now – and the heater and roof would likely need to be replaced within the next few years.

“I could sell my home and use the net proceeds towards the down payment of our new home”, he thought, “but I need more time to get our current home ready for sale.” “And, how can I afford mortgage payments on two homes?”  It didn’t seem possible.

Would his cruel boss, Ebenezer Scrooge, give him a bonus to make this work?  As expected, Cratchit was laughed out of Scrooge’s office.  Discouraged and dejected, Cratchit gave up.

But Scrooge, after being visited that night by Christmas ghosts, miraculously agreed the next day to simultaneously lend Cratchit two loans: 75% and 80% of the values of his current and dream home, respectively!  Cratchit, having just a 680 credit score, could now use Scrooge’s Bridge Loan proceeds towards the down payment on the new home.  Scrooge’s 12-month Bridge Loan term would provide ample time for Cratchit to sell his existing property.  And, Scrooge waived all Bridge Loan payments until Cratchit sold his current home – when the principal would be paid back plus accrued interest. 

Cratchit made an offer on his dream home the next day!

Here’s the Point: Bridge Loans are alive and well, and therefore you don’t necessarily need to sell your current home before purchasing your dream home.

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Dick Cantner - December 20, 2019 Reply

Neat story. Well done Mike.

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