Bridge Loan - How Do They Work?

From: Mark Orr <markorr@vais.net>
Subject: Bridge Loan - How Do They Work?
Date: Tue, 18 Aug 1998 23:17:11 -0800

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We are in the process of relocating from WashDC to VA Beach due to new
job assignment.  I've told about something called a "bridge loan" which
provides a short term loan mechanism to put a contract on the new house
prior to settling on the old house.  Once the old house completes
settlement, I believe the bridge loan then gets closed-out and proceeds
from sale used to establish a longer term mortgage on new house via
bank.

Can anyone on the list provide more information on exactly how these
type of loans work and are there any downsides I should be concerned
about (e.g., higher interest rates, potential financial impacts
resulting from carrying two loans if settlement difficulties are
encountered, etc.).
- -- 
Cheers,
Mark Orr
mailto:markorr@vais.net



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