Business method for acquisition of debtor real-estate and restructuring of debt

• US 7,213,001 B2
• Filed: 06/14/2001
• Issued: 05/01/2007
• Est. Priority Date: 06/14/2001
• Status: Expired due to Fees

• Current Assignee: Centerfuse Corp.
• Original Assignee: Carpe Diem Worldwide Enterprises
• Inventors: DeSane, Bill
• Primary Examiner(s): PATEL, JAGDISH
• Application Number:
  US09/882,992
• Publication Number:
  US 20030041018A1
• Time in Patent Office: 2,147 Days
• Field of Search: 705/37, 705/38, 705/35
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method for restructuring the debt of a debtor who has an interest in a distressed property by a third party including the steps of comparing a present appraised value of the property to a total cost for purchasing the property from the debtor by the third party, satisfying the personal debt of debtor by the third party, and reselling the property back from the third party to the debtor based upon a present appraised value of the property, and if the present appraised value of the property exceeds the total cost to the third party by a preselected value then the third party purchases the property from the debtor, satisfies the personal debt of the debtor and resells the property back to the debtor at the present value of the property.

Claims

1. A method for restructuring the debt of a debtor who has an interest in a distressed property comprising the steps of:

calculating a balance of the debtor'"'"'s personal debt (B);

determining a mortgage balance remaining on the property (M);

determining the property'"'"'s present appraised value (A);

calculating a first closing cost (C₁) for purchasing the property from the debtor based upon the mortgage balance remaining on the property (M);

calculating a second closing cost (C₂) for reselling the property back to the debtor based upon the present appraised value of the property (A);

calculating a down payment (D) for reselling the property back to the debtor at the appraised value of the property (A);

determining a total cost (T_C) according to the equation T_c=(B+M+C₁+C₂+D) for purchasing the property from the debtor, satisfying the debtor'"'"'s personal debt and reselling the property back to the debtor at a present appraised value of the property;

comparing the total cost (T_C) to the present appraised value in the property (A) to determine if the present appraised value of the home (A) exceeds the total cost (T_C) by a preselected amount; and

purchasing said property from said debtor, satisfying said debtor'"'"'s balance of personal debt (B), and reselling said property back to said debtor at the present appraised value of the home (A) if said appraised value of the property (A) exceeds said total cost (T_C) by said preselected amount.

2. The method according to claim 1, further comprising,

providing funds for the costs of said first closing (C₁), second closing cost (C₂), down payment (D) and satisfaction of balance remaining on the property (M).

3. The method according to claim 1, further comprising:

if said appraised value of the property (A) does not exceed said total cost (T_C) by said preselected amount determining a time period (x), wherein time period (x) is the time it will take said debtor to eliminate said balance of said personal debt (B) and, if said time period (x) is one year or less leasing said property to said debtor for an initial time period rent free and leasing said property to said debtor for a second time period after said initial time period at a selected rental rate.

4. The method according to claim 3, wherein said time period is calculated according to the equation×

=(B+L)/I, wherein ×

is the time period, B is the balance of personal debt, L is an estimated yearly liability, and I is a yearly income.

5. The method according to claim 3, further comprising:

controlling said debtor'"'"'s finances for a selected period to ensure a reduction in said debtor'"'"'s balance of personal debt (B).

6. The method according to claim 3, further comprising:

reselling said property back to said debtor after said balance of personal debt (B) has been eliminated.

7. The method according to claim 6, further comprising:

providing funds for the costs of said first closing cost (C₁), second closing cost (C₂), down payment (D) and satisfaction of balance remaining on the property (M).

8. The method according to claim 3, further comprising:

if said time period (x) is more than one year leasing said property to said debtor at a selected rental rate.