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| What is a bridge loan and how does it 'work'? TIA
patty_cakes |
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| patty cakes, Don't tell me that you've been out buying bridges, again! One doesn't happen to link New York with Brooklyn, by chance, does it? I think that a bridge loan is one that you get to buy a "new" home, to be carried until you get the "old" one sold and the account settled, at which time you pay off (well, most of) the loan. If I'm worng - some one will be coming along to tell you the facts. ole joyful |
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- Posted by patty_cakes (My Page) on Tue, Apr 25, 06 at 20:34
| LOL OJFG(how old is *old*?) actually there was this huge river in Death Valley, and I 'bought stock' in the bridge. LOL I've also been burning a few bridges behind me!LOL I'm trying to find this out for a friend who will be putting her home on the market in the next couple of months, but in the meantime, has found a Victorian 'she just can't stop thinking about'. Your explanation sounds logical. ;o) patty_cakes patty_cakes |
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| 77 ... ... and enjoying it - despite the negative stuff that I write here, from time to time. A lady whom I respect, Jane Jacobs, a renowned city planner who wrote a book something like, "The Life and Death of American Cities" that for a number of years has become more or less a text for students in that field, who recently wrote a book, "Dark Age Ahead", died yesterday. A couple of weeks and she'd have been 90. Someone said that, though she's been in ill health for a couple of years, a while ago she was to speak, came on stage with a walker, but when she started to talk, the voice was strong and the brain as sharp as ever. A humble, inquisitive woman. Who never attended University. But - she learned new things. Every day. And rejoiced in life. Recently, while travelling with a friend, in a discussion about, among many other things, death, she said that she regretted that she wouldn't be here to see how things turned out. o j |
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| Joyful's got it right. It's a loan secured by future possession of collateral. We used one between buying one house and selling another. Worked fine and didn't cost much. |
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| "It's a loan secured by future possession of collateral." No, most bridge loans are secured by the old house to get to settlement on the new house. |
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| Oops -- thanks for the correction. I assumed when we got ours that it was the new house securing it. Learned something today... |
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| What might be the possibility of shifting the bridge loan to become a mortgage on the new house, then using it to invest, rather than paying that rather hefty fee? Of course, then it is no longer a temporary loan and one would have to go through all the rigmarole associated with one o' them mortgage critters. o j |
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