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What happens if the home does not increase in value, or if the home decreases in value?

April 26, 2017decreases happens Home increase value

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What happens if the home does not increase in value, or if the home decreases in value?

1 Answer

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PeopleTrust is only repaid from net gain on the home at resale. If the home does not increase in value, then PeopleTrust only recoups the amount of the second lien, because there is no gain to share. If the value of the home decreases, PeopleTrust’s second lien is repaid based on available net proceeds after the primary mortgage and owner’s equity is repaid, if any.