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Bridge Loan

A short term loan used to transition in between the paying off of an old loan, and the inception of permanent financing. This is often used to build or purchase a new home, when the previous home is still owned, but is up for sale. Once the previous home is sold, and the owner receives the proceeds from that sale, permanent financing is usually obtained.

See also:
  • Back-Up Contract
  • Balloon
  • Bankruptcy
  • Bill of Sale
  • Binder
  • Bridge Loan
  • Broker
  • Buyer
  • Buyer’s Agent

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