Swing loans, more appropriately termed "bridge loans", are designed for people who can't afford to carry two mortgages at once. A swing loan, also called a "gap loan," is a short-term loan on a property the borrower is acquiring, allowing the borrower to carry both the mortgage on his existing home that he's selling, as well as the new mortgage on a home he's bought.
With many people in a financial pinch, they're being turned down for bridge loans, and are thus unable to sell their homes. This means that the real estate market suffers.
The US government has bailed out GM, Chrysler, AIG, Lehman Brothers, and countless other companies and industries. How about giving a stimulus to the real estate market by helping potential home buyers get bridge loans?
Or is this another case of politicians talking rather than doing?
From California to North Carolina, the real estate industry needs help!
Tuesday, July 21, 2009
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