By Mike King
The Partners Trust Brokerage 

Culver City Empty Nesters Can Use Cross Collateralization to Move Up or Down!

How empty nesters can compete in a highly competitive buyers' market


April 17, 2014


In this market of thin inventory and properties being snapped up swiftly with multiple bidders, one of the biggest challenges facing move up, or trade down sellers (empty nesters) is how to compete in a very aggressive market with other buyers.

Sellers with plenty of equity in their home, but who need to utilize that equity to make their next purchase (i.e .; make the purchase contingent upon the sale of their current home) face not being able to make the move at all because sellers are incredibly reluctant to accept a contingent offer.

If that sounds like your current predicament, cross collateralization could work for you. Say what?

Don't be put of by the term cross collateralization, simply put, a bank will loan you the money from the equity in your current house to make the purchase of you next home. Once that escrow closes, and you sell your old home, the bank takes the money from that sale and resets the loan on your new home to something within your budget, or you can pay it off entirely!


Here's an outline of the program.


• Buyers can buy a home without selling their current home

• Buyers can make a non-contingent offer

• 100% financing available

• Current residence may be listed, but doesn't have to be

Loan Program Options:

• 3/1; 5/1 & 7/1 ARMS

• Interest Only available

Property Type Allowed


• Condo/Townhome

• 1 – 4 Unit Apartments


• Primary Residence

• Second Homes

• Investment properties


• When existing property is sold, lien will need to be paid down to maintain maximum Loan to Value. Loan payment will recast when balance is paid down

• Borrower must qualify for mortgage payment in all liens

• Two appraisals and two prelims required (one for each property)

• 3 day right of rescission

• Loan must be in first position on both properties

If you would like more details on this, my email address is or call my direct line at 310-500-1305.


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