Bridge loans are temporary loans that bridge the gap between the sales price of a new home and a home buyer’s new mortgage. This may happen in the event that the client’s home has a firm sale where the buyers removed all conditions for the sale, but the sale proceeds have not arrived yet as the sale of the old home is due after the purchase of the new one. The bridge loan is secured to the buyer’s existing home. Bridge financing requires extensive preparation, which is why many borrowers manage to avoid the cost and extra paperwork of bridge financing by getting their realtors to coordinate the dates of their sale and purchase.