What are the Key HEFI Owner Considerations?
Investor Economic Interest The HEFI contract entitles the HEFI Owner to a pre-determined percentage share of existing and future home equity in the form of an option in equity participation. The percentage will be specified in the HEFI Agreement. The value of this economic interest upon sale of the home will be subject to the appreciation or depreciation in value of the home on a pro-rata basis as this is a pure equity investment exposure This is a strictly passive investment where the HEFI Owner (except under certain extreme circumstances) would have no direct involvement in or liability for the operations, expenses or maintenance of the property. HEFI Owner Rights The homeowner is required to notify the investor and receive written permission from the investor prior to assuming any new debt on the property, such as second mortgage, home equity loan etc. HEX (Home Equity Exchange) will receive copies of all tax, mortgage and insurance bills to monitor timely payment by the homeowner.
