Author Topic: 'home co-investing' 'shared appreciation' the latest finaicial ripoff?  (Read 1214 times)

The_Big_H

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I don't know what Ive done to inflict this upon myself, but lately Ive been getting a dearth of ads on facebook, and now by mail, for what I guess are called "Shared Appreciations" or "Home Co Investing".

Basically it looks like they give you a check in exchange you give up a part of your home equity and potential gains of the home when you sell, but it looks like they put a lien on your house and they have a 30 year limit.

Has anyone else heard of this?  They scream "RIP OFF" when they send me mailers that look like checks from the outside to get you to open them.  Plus they are advertised as "like a HELOC only better" or "access equity from your home with out adding debt".

https://www.unison.com/homeowner_debt_relief
https://www.nerdwallet.com/blog/mortgages/shared-appreciatio-tapping-home-equity-without-taking-out-a-loan/

I haven't seen my usual phalanx of personal finance gurus that I follow cover these (not even Dave Ramsey!, these seem pretty sketchy, like putting the reverse mortgage people to shame)

SwordGuy

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Re: 'home co-investing' 'shared appreciation' the latest finaicial ripoff?
« Reply #1 on: September 11, 2019, 10:51:01 PM »
20 to 1 you have to do everything perfectly or they can get your house for pennies on the dollar.    So, no missed or lost home insurance or property tax or mortgage payments.


The_Big_H

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Re: 'home co-investing' 'shared appreciation' the latest finaicial ripoff?
« Reply #2 on: September 11, 2019, 11:05:42 PM »
20 to 1 you have to do everything perfectly or they can get your house for pennies on the dollar.    So, no missed or lost home insurance or property tax or mortgage payments.

Just like a reverse mortgage, only worse.

I dug up some fine print it says they can increase their take if you don't keep up your house and its property value suffers as a result (so like a lease, only worse)

You also cant sell your house for 3 years and cannot rent it out unless you buy them out. (who owns the house at this point anyway!)