A $1.4 Million Loan, A $995,000 Home That Wont Sell, And 9 Months Of Waiting —… | Latest Lifestyle News
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A Dallas couple took on a $1.4 million bridge loan to buy their dream home, betting their old property would sell quickly. Nine months later, the house is still sitting on the market, foreclosure is looming, and their story has become a cautionary tale on “The Ramsey Show.”
Brenda, who called into the program in June, said the plan was simple: sell the first home, pay off the loan, and move on. The couple borrowed in October at 10.99% interest, but the property — a remodeled two-acre retreat listed at $995,000 — has stalled despite price cuts and now sits under a shaky contract tied to another buyer’s sale.
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With debt mounting, $100,000 in savings dwindling, and foreclosure on the horizon, the couple has little room to maneuver. “The Ramsey Show” co-hosts George Kamel and Jade Warshaw urged them to pressure their realtor, set hard deadlines, and fight to avoid losing everything.
Brenda admitted she and her husband knew the bridge loan carried steep terms. “So apparently bridge loans — they explained to us — bridge loans are always high-interest, like this. They’re anywhere between 8 and 12,” she said.
Kamel reacted with disbelief that the couple moved forward even after being warned of the risk. Warshaw listened as Brenda acknowledged they had assumed the old home would sell quickly, but the plan has backfired.
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The unsold property is a country-style home on two acres, listed at $995,000 and only minutes from local amenities, including a Starbucks. Despite the reduced price, the listing has struggled to attract interest.
“I think people are looking for more palatial homes in that area [for that money],” Brenda said. She added, “There’s a lot of new development out here, a lot of incentives.”
The home is currently under contract with prospective buyers, but the deal depends on them selling their own property first. Forty days into the agreement, there has been no progress, leaving Brenda and her husband in limbo.
Kamel and Warshaw flagged another obstacle: the house still shows as “pending” on listing platforms, which discourages new offers. Warshaw advised that the realtor should switch the listing back to “active” to draw more buyers.
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She also suggested the couple push their agent to add a firm deadline in the contract so the current buyers must either close by a set date or step aside. If nothing changes, she said, the couple should consider switching to a new realtor.
The couple holds about $100,000 in savings — far less than what’s needed if the bridge loan defaults. “Your house is the collateral,” Kamel warned. If the current deal falls through, the risk of foreclosure will intensify.
Both co-hosts also cautioned against turning to another hard-money lender, stressing that doubling down on high-interest debt would only worsen the situation. “You gotta fight. Fight and claw your way out of this thing. Don’t go through foreclosure,” Kamel said.
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This article A $1.4 Million Loan, A $995,000 Home That Won’t Sell, And 9 Months Of Waiting — How A Dallas Couple’s Dream Deal Became A Nightmare originally appeared on Benzinga.com
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