Bridge Lending Glossary

A working glossary of the terms bridge lenders use when validating borrowers — entity status, track record signals, lien terminology, and contractor-licensing concepts. Maintained by Wade Intel as a primary-source reference.

• Bankruptcy — A federal court proceeding where individuals or businesses seek relief from debts they cannot pay. Chapter 7…
• Beneficial Ownership — The natural person(s) who ultimately own or control a legal entity, even if the entity is held through…
• Bridge Loan — A short-term loan (typically 6-24 months) used in real estate to bridge the gap between acquiring a property…
• Construction Holdback — A portion of a bridge loan that is held in reserve and disbursed in stages as construction or renovation…
• Deed of Trust — A legal document that secures a loan with real property by transferring legal title to a trustee until the…
• Draw Schedule — A predetermined timeline specifying when and how much money from a construction holdback will be released to…
• Experience Tier — A classification system used by bridge lenders to categorize borrowers based on the number and quality of…
• Fix and Flip — A real estate investment strategy where a property is purchased, renovated, and resold for profit within a…
• Foreclosure — The legal process by which a lender repossesses a property after the borrower defaults on the loan.…
• General Contractor License — A state-issued license authorizing a contractor to perform construction work. Requirements vary by state —…
• Good Standing — An entity status indicating that a business has met all state filing requirements, paid all fees, and is…
• Hard Money Loan — A type of bridge loan funded by private investors or non-bank lenders, secured primarily by the value of the…
• Judgment Lien — A lien placed on a debtor’s property as a result of a court judgment. When a court rules that a person owes…
• Lis Pendens — A recorded notice indicating that a lawsuit affecting the title to a specific property has been filed. Latin…
• Loan-to-Value (LTV) — The ratio of a loan amount to the appraised value of the property securing it, expressed as a percentage. A…
• Mechanics Lien — A legal claim placed on a property by a contractor, subcontractor, or material supplier who has not been paid…
• Notice of Default (NOD) — A formal notification recorded in the county where a property is located, stating that a borrower has failed…
• Registered Agent — A person or company designated by a business entity to receive legal notices, government correspondence, and…
• Secretary of State Filing — The official registration of a business entity (LLC, Corporation, LP, etc.) with a state’s Secretary of State…
• Workers’ Compensation Insurance — Insurance that provides wage replacement and medical benefits to employees injured on the job. Most states…

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