Came across a term I hadn’t seen in a generation, Equity Sharing!
Last used in the ultra high interest rate days of the early 1980’s equity sharing
is making a comeback as a way to bailout investors trapped in their property, they owe more than the value of the property, cannot sell and cannot afford to carry the negative cash flow.
Interesting!
Read more on this blog: http://repros.weebly.com/real-estate-blog.html
Bill
Kemet, if they can’t sell the property for what is owed on it, there is no equity to share.
Back in the days of ultra-high interest rates, it wasn’t that people were upside down in their house. It was that they couldn’t sell because nobody could afford the monthly payments when interest rates were 16%.
There were several creative ways to sell property that did not involve the banks and the high interest rates.
When interest rates on mortgages were 16%, there was double didget inflation, so the purchase price of the houses was going up fast and there was equity.