Article
the Promise and Perils of Shared Equity Financing
Probate & Property
(2021)
Abstract
It is the rare homeowner, or even lawyer, who thinks twice about why mortgages are part of so many real
estate transactions. Real estate is expensive, and few have the money to pay cash for a home. As a result, people
enter into transactions with mortgage lenders and are exposed to all of the risks that come along with mortgage
financing: default, late fees, and foreclosure.
If you stripped away all of our history and our current practices in financing homeownership with mortgages, you
might ask how could people with limited assets acquire something as expensive as a home? It turns out that there
are all sorts of ways to divide the rights and responsibilities of homeownership to offer households just the aspects they want and no more.
A new development, shared equity financing, will make us all think twice about mortgages. Sharing the risks and
rewards of a home purchase will be attractive to many, but shared equity financing also has its share of perils that are
unique to it.
Keywords
- shared equity,
- shared equity financing,
- mortgages,
- housing finance,
- homeownership
Disciplines
Publication Date
March, 2021
Citation Information
David J Reiss. "the Promise and Perils of Shared Equity Financing" Probate & Property (2021) p. 46 - 49 Available at: http://works.bepress.com/david_reiss/118/