Home Equity - Rex Agreement Plan

ladyt1961 · Joined: 25 Sep 2007 Posts: 2 1.73 Dollars($)

I heard about this company on the radio and was wondering about this type of service and what are some of the down falls in doing something like this?
You can find there web page under Rexagreement

I'm tying to do improvements on my home, but don't want to take out a second loan or increase my current mortgage payment. And do not or old enough to do a reverse mortgage.

helping_user · Posted: Thu Sep 27, 2007 10:58 pm Post subject: RE: Rex agreement - the benefits

Welcome lady.

The Rex Agreement as offered by Rex and Company in San Francisco provides homeowners with an up-front cash payment worth 12-17% of the existing home value. In return, the company would take back half of the increase in the home value when it is sold.

The best thing about it is, if the home value reduces, the homeowner would share the loss equally allow with the company offering Rex. For instance, if your home is valued at $550,000 and you sign a Rex Agreement for a payment of $100,000.

Now if the house is sold at $700,000 about 5 years later, then Rex should get back the $100,000 along with half the difference ($150,000) between the Sale price and Purchase price. So, Rex would get $ 1,75,000.

But if the home value reduces by $150,000, then Rex and you should share the loss equally, say $75,000 each. That is, rex would then subtract $75,000 from the $100,000 payment.

Thanks.

Guest 0.10 Dollars($)

Hi Ladyt,

Your Rex agreement ends when you sell your home but it can last up to 50 years. This agreement term varies from place to place, as in Illinois it is for 40 years whereas in North Carolina it is for 30 years.

It has its drawbacks too, as you wanted to know. The company might force you to sell your home under certain conditions like

You fail to maintain your home as primary residence.

You don't pay taxes, insurances or mortgage payments.

You don't maintain the property in good condition.

You fail to maintain proper insurance coverage.

You take out loans that exceed an agreed-upon limit against your home.

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