Ask Terry Questions Accessing Home Equity via Unisom

Accessing Home Equity via Unisom

By Terry Savage on March 16, 2019 | Housing / Real Estate

Hi Terry, Enjoy your columns because you show common sense and experience based know-how. Q: What do you think about the UNISON Home Equity deal? Please respond ASAP because I’m close to closing on it. Best, Jim

Terry Says

I hope I got to you quickly enough because I am going to tell you NOT to do this!  The devil is in the details — but after many, many years in this financial world I have an instinct for things that are “too good to be true.”  And this is one of them!

Many years ago, another California firm had a business model like this — sharing the profits on the upside, with seemingly no downside. And back then everyone thought home prices could only go up.  Then came the 2008-2009 housing market collapse.  That company collapsed as well,  since they couldn’t give their investors a promised return.  But the titles of the homes involved were severely compromised.

Here’s what this company doesn’t detail on this page:  Specifically, what happens if you default, or get sick and can’t pay back your current mortgage loan? I suspect that buried in this deal are rights to your equity that could compromise any effort you might make with your bank lender in the future.  They say they will assist you with an “orderly sale.”   I hope  participants don’t have to find out how this works!!

Honestly, I can’t spell it out — but this deal just doesn’t sit well with me.  This company is acting as the middleman, making fees along the way.  But the two “ends” of the deal — those providing the capital for you to take money out — and the home owners themselves — will likely wind up having problems in the end.

Please re-think you r financial strategy.



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