Method for managing a home equity sales program

Abstract

A system and method for conducting a home equity sales (HES) program enables a real estate property owner to sell a partial equity ownership interest in a real estate property. This allows the property owner to sell the interest outright to an investor and receive compensation for the sale of the interest. The property interests of the property owner and the investor are both recorded in property records relating to that particular property. The property owner may sell multiple interests in the same property and an investor may also purchase these multiple interests.

1 . (canceled) 
     
     
         2 . A computer-implemented method for use with a residential property for creating and managing a transferable Partial Equity Interest (PEI) investment in the residential property to facilitate capital growth through PH investment, thereby opening the U.S. residential equity market to 3 rd  party investment, and comprising the steps of:
 a) assigning a dollar amount to the residential property at the time of PH investment creation by a computer processor and a data interface,   b) obtaining by the computer processor and a data interface an initial dollar value of all unsatisfied encumbrances of record against the residential property which Initial Encumbrance Amount is fixed for the term of the investment,   c) calculating the dollar value of the Net Equity of the residential property as equal to the dollar value of the residential property less the Initial Encumbrance Amount by the computer processor,   d) creating a PEI investment as a fraction of the Net Equity of the residential property which portion is characterized by the PEI Investment Percentage,   e) valuing the PH investment,   f) tracking the appreciated/depreciated value of the PEI investment through the value of the residential property by the computer,   g) programming the computer to create an Instrument memorializing the PEI investment including at least the following information:
 i) the PEI Investment Percentage, 
 ii) a promise to share with the PH investment a portion of the proceeds from the residential property, which portion is calculated based on the then current dollar value of the Net Equity of the residential property and which portion is due with the occurrence of a specified event such as buy-back, repurchase, refinance, default, sale, homeowner no longer in-residence, or transfer and 
 iii) residential property reference and validation information including residential property locator information, dollar value of residential property at PH investment creation; and the Initial Encumbrance Amount, and 
   i) programming the computer to calculate the dollar value of the portion of the proceeds due the PEI investment as a joint result of the following specified and ordered unconventional method calculation comprising the steps of:
 i) the computer through its data interface assigning a current dollar value to the underlying residential property as of the specified date, 
 ii) calculating the current appreciated/depreciated value of the Net Equity by subtracting from the current dollar value of the residential property, the Initial Encumbrance Amount, and 
 iii) calculating the portion of the proceeds due the PEI investment based on the Net Equity of the residential property, and 
   j) securing the PEI investment by using the computer and data interface to make the Instrument of record against the residential property.   
     
     
         3 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of programming the computer to further calculate the dollar value of the portion of the proceeds due the PEI investment as a further joint result of the following specified and ordered unconventional method calculation comprising the steps of:
 a. the computer through its data interface assigning a current dollar value of the underlying residential property as of the specified date,   b. calculating the current appreciated/depreciated value of the Net Equity by subtracting from the current dollar value of the residential property, the Initial Encumbrance Amount alone, and   c. calculating the portion of the proceeds due the PEI investment as a part of the Net Equity of the residential property.   
     
     
         4 . The method of  claim 2 , further comprising the computer implemented steps of creating and managing a transferable PEI investment by specially programming the computer to store the Initial Encumbrance Amount for the particular residential property and always calculating the dollar amount of the Net Equity as the current value of the residential property less the stored fixed Initial Encumbrance Amount. 
     
     
         5 . The method of  claim 2 , further comprising the computer implemented steps of creating and managing a transferable PEI investment further comprising the steps of determining the fixed Initial Encumbrance Amount as including all mortgages. 
     
     
         6 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of obtaining an Initial Encumbrance Amount at the time of a sale or purchase with reference to the mortgage amount. 
     
     
         7 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of obtaining an Initial Encumbrance Amount at the time of a refinance or extraction/diversification PEI investment creation with reference to the remaining mortgage balance reflected in mortgagee records. 
     
     
         8 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of:
 a) establishing an Investment Proceeds Percentage useable for determining the portion of the proceeds due to the PEI investment,   b) promising to share with the PEI investment a portion of the transfer proceeds from the residential property, and   c) calculating the investment proceeds as the current dollar value of the Net Equity of the residential property multiplied by the Investment Proceeds Percentage.   
     
     
         9 . The method of  claim 8 , further comprising the computer implemented steps of creating the Instrument promise to pay the investment proceeds as a percentage of the Net Equity as the only investment payment obligation other than to pay charges such as fees and commissions. 
     
     
         10 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of using the computer and data interface to make the Instrument of record as a lien against the residential property. 
     
     
         11 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of calculating an estimated future rate of PH investment return based on an estimate of a future value of the residential property. 
     
     
         12 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of providing periodic PH investment valuations using the Initial Encumbrance Amount. 
     
     
         13 . The method of  claim 2 , further comprising the computer implemented steps of using the data interface to automatically access an automated home appraisal service to obtain index reference information for assigning a current dollar value to a residential property. 
     
     
         14 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of maintaining a real estate property database including information such as PEI owner information, property owner information, residential property location, residential property address, appraised value, changes in the appraised values over time, Initial Encumbrance Amount, and PEI Investment Percentage. 
     
     
         15 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of conducting a due diligence search of the residential property to determine that the residential property is comprised of good, marketable and indefeasible title and is clean, free and clear of unsatisfied encumbrances except the permitted encumbrances. 
     
     
         16 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of assigning a dollar value to the residential property derived from a willing buyer/seller of the residential property at time of PEI investment creation by a computer processor and a data interface. 
     
     
         17 . The computer-implemented method of  claim 2 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of assigning a value to a residential property at the time of equity extraction PEI investment creation derived from reference information obtained from an appraisal. 
     
     
         18 . A computer-implemented method for investing in a residential property while avoiding property ownership through creation of a transferable Partial Equity Interest (PEI) investment in the residential property to thereby facilitate capital growth and open to non-owner investors the US residential property equity marker comprising the steps of:
 a) seeking an investment likely to provide a profit from property value appreciation,   b) calculating the dollar value of the Net Equity portion of the property based on the dollar value of the residential property less all mortgages,   c) valuing the PEI investment,   d) creating a non-ownership PEI investment that appreciates with the Net Equity of the property and provides investment profit as a function of the appreciated/depreciated value of the real property less the all mortgages, and   e) creating and managing a real estate property database for reference, modification and update containing and permanently storing PEI investment transaction information in support of and for securing the PEI investment, the information including for instance PH owner information, property owner information, property location, property address, appraised value, changes in the appraised values, the total of amount all unsatisfied and outstanding obligations as of PEI investment creation, and the value of the residential property at time of PH investment creation.   
     
     
         19 . The computer-implemented method of  claim 18 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of paying the proceeds of PH investment upon an event including buy-back, repurchase, refinance, default, sale, homeowner no longer in residence, and transfer. 
     
     
         20 . The computer-implemented method of  claim 18 , for creating and managing a transferable PEI investment in the residential property further comprising the steps of paying the PEI investment proceeds as the sole investment payment obligation other than fees and commissions with no repayment of initial investment being required at any time. 
     
     
         21 . In a method of investing in a real property, the improvement comprising creating a Partial Equity Interest (PEI) investment in the real property to facilitate non-owner investment in the real property through at least the following computer-implemented method steps:
 a) identifying a real property available for Net Equity investment;   b) calculating the dollar value of the Net Equity portion of the real property available for investment based on the dollar value of the real property less the total of all mortgages,   c) selecting a Net Equity portion suitable for investment and likely to appreciate with the equity of the property thereby providing an investment having a value depending upon the appreciated/depreciated value of the real property   d) valuing the PEI investment as a percentage of the Net Equity,   e) creating and managing a real property database for reference, modification and update containing and permanently storing PEI investment transaction information in support of and for securing the PEI investment, the information including: PH owner information, property owner information, property location/address, appraised value, changes in the appraised values over time, the total of amount all unsatisfied and outstanding obligations as of PEI investment creation and the value of the real property at time of PH investment creation.