1. Who is Castlerock REO?
Castlerock REO is one of the nation’s leading purchasers or
foreclosed homes from banks and financial institutions. We purchase homes in
bulk and pass these discounts onto the general public.
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2. What is our reputation?
Founders of Castlerock REO have been in the real estate
business for over 30 years combined. They have been featured on CNN, NY
Times, Connecticut Post, Fairfield County Business Journal and numerous
other publications. Having been involved in excess of 1,000 transactions; we
pride ourselves on our high standard of ethics. We have documented
testimonials and references available upon request.
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3. What types of homes does Castlerock REO sell and where are they located?
Castlerock REO sells homes that are typically priced under
$50,000, with the average home selling between $15,000 and $25,000. Most of
these homes are located the Midwest and Southeast United States.
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4. Why are these homes so cheap? How is this possible?
Amazingly, many of the homes we sell previously sold 5 years
ago between $100,000 and $200,000. Due to the massive amount of foreclosures
which took place over the last few years banks are literally selling them
for pennies on the dollar. Castlerock’s long standing relationships with
lending institutions and our ability to fund large bulk purchases of homes
allows us to purchase at huge discounts and in turn sell at discounts to the
public.
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5. How can I view a property I am interested in?
Once you have located a home of interest we recommend you
call the assigned agent in our office and set up a time to view the
property. We will make arrangements for you to view the property at your
convenience.
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6. What is the physical condition of the property?
We encourage you to do all of your own due diligence which
includes touring the property and inspecting it to make sure you are fully
aware of the condition and any physical defects. We have not been in any of
our properties and do not make any representations as to the
condition.
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7. Are there back taxes, liens or encumbrances on the property?
Since our properties have recently gone through the
foreclosure process most liens have been wiped out. What does stay on the
property are delinquent and current taxes if any, delinquent water bills (in
certain areas) and housing code violations. We are happy to share any
information we have obtained in prior research relating to liens, back
taxes, etc, however we do not make any representations and recommend that
you do your own due diligence to confirm. If you have further concerns you
can order a title report which we can assist you in obtaining. Title reports
generally run between $150 and $300 depending upon location of the property
and title company.
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8. What are my options for purchasing?
When purchasing from Castlerock REO we offer two methods of
purchase. Cash purchases or Owner financing:
Cash Purchases (Cash for deed)
The easiest, most simple and cheapest way is to purchase all cash. We are
able to give you the best possible pricing this way. We accept wire
transfer, certified bank check, or pay pal.
Owner Financing (land contract/ contract for deed)
If you are unable to come up with the entire cash price at once we offer
owner financing through a land contract also known as contract for deed. Our
financing is offered with a 15 year loan with a fixed rate of interest. The
financed price is typically higher than the all cash price and requires an
approval process.
There are no pre payment penalties and we encourage you to refinance and pre
pay the balance of your loan at any time. Your monthly payments which
include taxes are typically less than average rent in the neighborhood,
making this an incredible opportunity for renters to become home owners. For
more information on our land contract program please visit our How It Works
Page
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9. I am an all cash buyer what are my options regarding title and deeds?
Most of our buyers obtain title through a quit claim deed.
This is how we receive title from the banks and how we transfer them to our
buyers in most cases. There is a $295 deed recording fee which is the only
closing expense if you take title with a quit claim deed. The other option
is to obtain a special or limited warranty deed through a full closing, in
which case you will have to obtain title insurance from a third party title
company. For full title insurance closings we charge a $950 transaction fee,
in addition you will have to pay for title insurance and deed recording fees
charged by the title company you chose.
If you chose to use a title company you should be aware that title insurance
will only cover the cost of the house and does not cover any improvements
you make or any appreciation over time
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10. What is a quit claim deed?
A quit claim deed essentially transfers whatever rights the
existing owner/grantor has in the property, but includes no guarantees that
clear title exists. Quitclaims do not guarantee the title is clear of liens,
such as tax liens, mortgage liens, mechanics liens and the like, or that
there are not other owners on title as well as the grantor. The interest the
grantor has is what the grantee gets. Quitclaim deeds are by far the
easiest, quickest, and least expensive to use, and require little
professional assistance.
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11. What is a special or limited warranty deed?
A special or limited warranty deed is less protective to the
buyer than a general warranty deed. The grantor of a special warranty deed
conveys the property with two warranties: that he or she received the title
to the property; and, that the property was not encumbered during his or her
ownership. The grantor of a special warranty deed warrants the title only
against his or her own omissions and/or defects, and warrants nothing
pertaining to the title prior to his or her possession.
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12. What is a trailing deed?
When we purchase properties, we enter into a purchase
contract with our supplier and pay the full purchase price. At that time, we
receive equitable title to the properties. Our supplier then is obligated to
deliver legal title to us within a reasonable period of time (usually 180
days or less). In other words, the legal title in the form of a deed
"trails" the transfer of equitable title to us. We handle our purchase
transactions this way because many municipalities are having trouble keeping
up with the high volumes of foreclosed properties working their way through
the system.
If we do not have yet a deed for the property you are buying, you have a
couple of choices. First, go ahead and close and we will provide you the
deed within 180 days. In the very unlikely event that our supplier cannot
provide us with the deed within the 180 day time frame at your request we
will refund you 110% of the purchase price.
Alternatively, you can wait until the deed is available. The downside of
this latter approach is that we may sell the property to another investor
who is willing to buy the property prior to receiving the deed.
If you want to understand more about the legal distinction between equitable
title and legal title, please see Wikipedia's entry on Equitable Title.
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13. When do I get my deed if I have a land Contract?
The deed to the property remains in Castlerock’s name until
the loan is paid in full. The deed is transferred into buyers name once all
terms of the loan are fulfilled. You have the option to pre pay at anytime
or make additional payments to reduce principal without penalty.
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14. Do we pay referral fees?
Yes! We welcome all referrals. We pay a $250 referral fee for
land contracts and $500 for cash sales.
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15. Do we work with local real estate agents?
Yes! Many of our properties are listed on the MLS with local
realtors. Please email us
if you would like to be added to our list of potential realtors. Please
include all applicable information.
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