Michael Petruccelli says;
Not used much anymore, bridge loans are obtained by those
who have not yet sold their previous property, but must close on a purchase
property. The bridge loan becomes the source of their funds for the down
payment. One reason for their fall from favor is that there are more and more
second mortgage lenders now that will lend at a high loan to value. In
addition, sellers often prefer to accept offers from buyers who have already
sold their property.
