Released: September 06, 2008

New way to tap home equity

Source: Kenneth Harney, Washington Post (Free Registration)

Improbable as it sounds at a time when U.S. homeowners have lost billions of dollars in equity, an industry is taking shape to help them tap portions of their equity wealth without incurring traditional mortgage debt or making interest payments.

Three companies with sophisticated capital market backers - REX, EquityKey and Grander Financial - are offering cash to owners who agree to cut them into some of the future appreciation of their properties.

The cash typically represents a fraction of the current market value of the home and rises with the percentage of future appreciation the owner is willing to share.

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