What does the HEFI Agreement mean to the homeowner?
1. What the Agreement means: In exchange for consideration based on a reduction of principal of Homeowner’s current mortgage or a cash contribution of down payment for the purchase of the home, the Homeowner will be giving the HEFI Owner an option with respect to the future value of the home. The option means the HEFI Owner has the right to receive cash proceeds based on the percentage interest in Homeowner’s equity above the original or newly restructured mortgage amount at the time of the sale of the home, should the Homeowner decide to sell the property. 2. The Homeowner will be able to redeem the HEFI from the HEFI Owner: The Homeowner will have the right to redeem the option in the home given to the HEFI Owner. To do so, the homeowner must give the HEFI Owner 30 day’s prior written notice of that decision and pay an amount equal to the current estimated market price of the HEFI (determined by a sophisticated third party appraisal methodology similar to the one used in pricing the
