Bridge Loans

by DeLadurantey Law Office, LLC on April 27, 2010

Bridge loans are a fairly uncommon type of loan, in which a borrower is given a short-term loan that is designed to bridge the gap between purchasing a property and when a longer-term mortgage loan can be secured.  They are somewhat rare outside of certain situations, particularly those in which property needs to be closed on quickly, or to pull a home out of foreclosure.

How Bridge Loans Work

Bridge loans are considered highly speculative, and most traditional lending institutions (such as banks) rarely issue them.  However, some private investing firms specialize in them.  These loans are very short in duration, often only a few weeks, and are only meant to give a property purchaser or refinancer time to make payments until a more traditional mortgage loan can be taken out.  The loan is then paid off with the money made from selling the property or refinancing it with a different loan.

If you or someone you love his having difficulty making regular loan payments and is considering filing for bankruptcy, the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC may be able to help.  To learn more about whether or not your situation can be remedied through a bankruptcy filing, contact us today by calling 414-377-0518.

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