Shared Appreciation

Shared Appreciation

When homeowners fall short of qualification for a loan modification a Shared Appreciation Contract (SAC) will be offered to further reduce the interest bearing loan principal balance.

SACs will provide investors with the economic incentive to further write down mortgage balances, which will position more homeowners to qualify for a modification and successfully meet their financing obligations.

The investor offers additional deferred noninterest bearing principal reduction in exchange to participating in the future housing appreciation. This will result in a lower monthly payment which will enable more homeowners to qualify for a loan modification.

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