Multi-Variable, Multi-Party Auction and Process to Prop-up Underwater Mortgages and Stabilize/Restore Market Values

摘要

A multi-variable/multi-party mediation by a program administrator coordinates homeowners, mortgage holders, and investors to refinance homes with underwater mortgages, being initiated by homeowner/mortgage holder registration with the administrator. Registration triggers invitations to the homeowner(s), the mortgage holder(s), and one or more investors, for the refinancing program. Refinancing includes requesting a new total loan amount equaling/exceeding current fair market values, and/or matching interest rate requests by investors, with homeowner monthly payment requests. Program completion requires homeowner, mortgage holder(s), and investor(s) acceptance, resulting in mutual rescission of original loan agreement(s), creating Time-Out Mortgages, and Home Certificates—a hybrid security being a combination promissory note and agreement for sharing a Deferred Recapture Amount (DRA), being a difference between the new principal loan amount and total prior home lien amounts. DRA amounts may vary after closing according to one of several schemes, incentivizing agreement, which drives up housing prices while reducing risk of foreclosure.