A win-win equity sharing solution for those who, along with their lenders, got caught up in the pricing escalation of 2005-06 was proposed in yesterdays Inman News by Alex Perriello. His basic proposal is to have the homeowner and the lender reach an equity sharing agreement that would split the principle of a current loan and the home owner and lender then share the proceeds when in 5 years or further the home is sold.
This could go a long way toward reducing the number of Maricopa County homes going into foreclosure and the increasing potential for deterioration of our neighborhoods flooded with empty and/or inexpensive homes that increase the percentage of non-owner occupied homes in our communities. As a REALTOR, I cringe everytime I talk with someone who is seriously considering abandoning their current home because they are "underwater." It is time for some no nonsense non government funded solutions to help get us beyond current market conditions.
You can read the entire article at: http://www.trendmls.com/Guest/News/IndustryNewsShowDoc.aspx?InmanId=104927