How It Works
Reverse Earned Equity
Before people lose their homes to foreclosure, they earn a little equity with every payment made to the mortgage company. This payment amount is unseen in foreclosures as banks want the delinquent mortgage amount paid without a price reduction. However, this is often hard to achieve as we witnessed an 8 trillion-dollar deficit between 2007-2008.HomeCars smart contracts extract this earned equity outside of the delinquent mortgage amount, prior to closing and establish a credit amount that a potential buyer can use after closing and see prior to the home purchase. This lien credit its attached to the seller's listing agreement. This gives a buyer a credit that can be used after closing with no tie into the mortgage. Lien credit amounts can vary but the options of usage are truly endless and needed.
What happens first?
We take financial industry portfolios and create data sheets prior to appraisals. These sheets look at original purchase prices, current market data, net proceeds, conditions, and increases in value scenarios.
What happens second?
Secondly, we determine a credit amount based on the total analysis. This credit amount will be used as a New Car Lien Credit or New Invoice Lien Credit. These credits are separated from the delinquent mortgage amount. This amount is attached to the listing agreement. The lower credit amount will always be used on the New Invoice Lien Credit.
HomeCars lien credit once signed and notarized, the amount is returned to HomeCars’ attorneys. These credits are separate from the delinquent mortgage amount and can voluntarily be removed any time prior to the accepted offer to purchase.
What happens third?
The buyer writes an offer to purchase, real estate agents are given special verbiage to add to the Offer to Purchase, HomeCars buyer and seller addendums are put into the offer. These disclosures detail who will benefit from the tax incentive; explains that this deal is between buyer and seller; and 3 days after closing, the HomeCars lien credit will be made available to the buyer which allows them to complete their purchase by buying either a vehicle, furniture, appliances, or other approved necessities. And getting a piece of the American dream has just gotten easier!
