Whats the difference between the market value EquityLock Financial determines and an appraisal by a local professional?
The market indexes we track simply follow and report the trends in a geographic area. It has nothing to do with an appraisal of any particular houses. The geographic index shows a broad average of housing values in the area. • Wouldn’t people who knew that prices were going to decline in their area be more likely to sign up? Perhaps. Our goal is to provide greater peace of mind to homeowners, whether the market goes up and down. People will feel more comfortable living where they want, regardless of what direction the market takes. To manage our risk, there may be limits to how many contracts we’ll do in a certain area. • What’s the difference between this and mortgage insurance? Mortgage insurance pays the lender if on resale there’s not enough equity on the loan. Home Price ProtectionTM contracts pays the homeowner if the value of real estate in the local area declines. People buy private mortgage insurance all the time. All that does is protect the lender, not the risk to a homeowne
