DENVER, Jan. 30, 2012 /PRNewswire/ -- Recognizing that restoring homeowner confidence remains one of the most important keys to America's economic recovery, EquityLock Solutions today announced a revolutionary new financing option they can access that enables consumers to protect their home equity for as little as $75 a month.
"If you're like most people, your home is your biggest asset, which means a drop in the market can have devastating consequences," said Ted Rusinoff, president of EquityLock Solutions, the first private sector company to offer home equity protection warranties. "We believe so strongly in our flagship Home Price Protection™ product that we want to make it affordable to both current homeowners and those looking to purchase a home."
Home Price Protection provides financial protection to current homeowners and homebuyers in the event the local housing market declines at the time one puts the home up for sale. The coverage includes compensation to the homeowner/buyer at resale of the home to the extent that the local house price index has declined since the purchase of the protection agreement. Prior to today, the cost of the protection was a one-time contract fee of 2.05 percent (national average) of the stated protection amount.
EquityLock Solutions has arranged financing from a third-party that is now offering up to 60 months financing at 9.98 percent for Home Price Protection. That means, for a $200,000 home at 1.75 percent for 60 months at 9.98 percent, the homeowner/buyer pays $74.33 a month.
"This pricing model softens the 2.05 percent contract fee by providing homeowners and buyers a little more financial flexibility. Now, instead of using a credit card and making payments over 24 months, they can finance and make payments over (up to) 60 months at lower than credit card interest rates," said Rusinoff.
Home Price Protection was inspired by internationally prominent economist, Robert Shiller, the Yale economist who gave his name to the Case-Shiller Home Price Index, and Federal Reserve Chairman Ben Bernanke, who in 2008 called for a hedge to absorb market risk for homeowners. Both have argued that the private sector can be a more appropriate provider for protecting individual homeowners against market declines.
In 2011, EquityLock Solutions became the first company to create an entirely new category and market based on the principle of preserving the value of a home from future market declines by creating a hedge against a home price index.
EquityLock Solution's Home Price Protection is not an insurance policy rather EquityLock's products are contracts to manage against market risks, not investment contracts or contracts of insurance.
EquityLock's products recognize homeowner's investment in their homes, doing things to maintain and improve their properties, which, in turn, improves the overall value of communities. "We pay homeowners if the local market index declines, even if the homeowner ends up selling their own home for a profit," said Rusinoff. "Because we believe in the power of homeownership to keep communities and the economy strong."
EquityLock has quickly gained supporters in the national real estate community, including RE/MAX and Real Living. These national real estate partners are offering EquityLock Solution's Home Price Protection(TM) to consumers through licensed REALTORS® across the country.
Home Price Protection(TM) is available to homeowners who are currently purchasing or already own their home. The agreement covers the home for 15 years with a one-time premium of roughly 1.5 to 3 percent of the value of the home. The homeowner is eligible to make a claim after residing in the protected home for 24 months and is protected for up to 20 percent of the stated value of the contract. The home is not protected by the product should it go into foreclosure, but is protected in a short sale.
For more information, visit www.equitylocksolutions.com.
SOURCE EquityLock Solutions