HOUSE TO SELL CONTINGENCY PROGRAM
Castle Rock’s House-to-Sell Contingency program is specifically designed for those homeowners who are required to sell their previous home before buying a new one due to budget constraints. Sure, your agent can put an offer in that includes a “House-to-Sell Contingency”, but that is not as appetizing to a potential seller and it means that sellers are less likely to accept the offer. It also comes with the stress of “what happens if my home doesn’t sell?” Lenders will usually want your old home sold prior to closing on the new one. What a conundrum!
Program Overview
The program is pretty straight forward. The buyer receives a 0% interest bridge loan on their old home while simultaneously receiving a hard offer to purchase their home in about 3 months should they not be able to sell their old home. If the home doesn’t sell in 90 days, the fund that backs the program steps in and purchase the property, but they continue to market it themselves for another 4 months with your customer getting the upside of any sale minus the program’s 2.4% fee. The bridge loan and offer are for up to 75% of the value of the property, which protects the lender in the event the home is not sold during that time. If for reason the program still hasn’t sold in 7 months, the customer simply walks away. It’s that simple.
The Loan on the New Home
The loan on the new home is a conventional loan that we facilitate. It is a normal conventional loan at market rates.
The Sale of the Old Home
Your agent still gets to list your old home. As a matter of fact, we require that they list your old home within 10 days of you closing on the new one. If they have not sold your home within 90 days of you closing on your new home, then our partners do step in, buy the home paying off the mortgages, and then try to sell it for the next four months with the customer getting the upside minus a 2.4% fee for the program. If it hasn’t been sold in 7 months, the customer simply walks away and our fund partners keep the home.
What does it cost?
The customer pays a 2.4% fee paid upon the sale of their old home. When the home is sold, however, the customer keeps the upside minus the fee, provided the home sells within 7 months.
Questions?
If you have any questions, call us at 813-727-3621. We’re happy to help!
Castle Rock Capital Funding, LLC (NMLS 2318381) is a Florida LLC owned by Douglass Smith, Licensed Mortgage Loan Originator (NMLS 1984040).
About Us
A family owned company; we’ve been helping residential and commercial clients purchase and refinance property. Please click on About in the headers to learn more.
Company NMLS: 2318381
www.nmlsconsumeraccess.org
