Solution · Qualification before your sale
Guaranteed Backup Contract
A company provides a contractual backstop for the sale of your current home. If it has not sold within the agreed period, the company agrees to purchase it at the contractually determined amount, subject to the agreement’s terms.
A sale backstop may help qualification.
When the applicable requirements are met, the lender may treat your current-home obligation differently. Your agent can continue marketing the home for a normal-market sale.
A few things matter.
- Review the backup purchase amount, fees, deadlines, eligibility and obligations before relying on it.
- The backup amount may differ from what you hope to receive in a normal sale.
- This does not automatically provide purchase funds or remove the costs of owning both homes.