Method and system for reverse mortgage replication using remainder interests
First Claim
1. A method for creating a protected remainder interest financial equity instrument on a computer, the method comprising the steps of:
- submitting a seller to underwriting to electronically determine the seller'"'"'s remaining life expectancy on the computer;
purchasing a protected remainder interest of an illiquid asset from the seller leaving the seller with a life estate; and
providing the seller the ability to defer selling at least a portion of the protected remainder interest at pre-specified terms electronically calculated on the computer and provided by a buyer of the protected remainder interest.
1 Assignment
0 Petitions
Accused Products
Abstract
Methods for providing remainder interests with protection to a seller and mitigation of the potential consequences suffered by related financial instruments. The protected remainder interest financial instrument includes submitting a seller to underwriting to accurately determine the seller'"'"'s remaining life expectancy, and purchasing the protected remainder interest of an illiquid asset from the seller leaving the seller with a life estate. The method includes a client system for displaying information related to the transaction and inputting information related to the seller, illiquid asset, and the buyer. The client system is used to create a request to create the protected remainder interest. A server system accepts the request, stores the information in memory, and creates the protected remainder interest. The server system includes software for linking seller and buyers of protected remainder interests, which include terms of the protected remainder interest such as contingent sale or contingent purchase schedules.
7 Citations
11 Claims
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1. A method for creating a protected remainder interest financial equity instrument on a computer, the method comprising the steps of:
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submitting a seller to underwriting to electronically determine the seller'"'"'s remaining life expectancy on the computer; purchasing a protected remainder interest of an illiquid asset from the seller leaving the seller with a life estate; and providing the seller the ability to defer selling at least a portion of the protected remainder interest at pre-specified terms electronically calculated on the computer and provided by a buyer of the protected remainder interest. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9)
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10. A system for providing a protected remainder interest equity financial instrument comprising a computer configured to:
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submit information related to a seller to an underwriting routine to accurately determine the seller'"'"'s remaining life expectancy; and based on the seller'"'"'s remaining life expectancy, purchase for a buyer a protected remainder interest of an illiquid asset from the seller leaving the seller with a life estate in the illiquid asset.
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11. A computer readable medium whose contents cause a computer system to provide a protected remainder interest equity financial instrument, the computer system having a server program and a client program with functions for invocation by performing the steps of:
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a) submitting a seller to underwriting to accurately determine a remaining life expectancy of the seller; b) purchasing a protected remainder interest of an illiquid asset from the seller while creating a life estate for the seller in the illiquid asset; and c) using a contingent purchase schedule from a buyer of the protected remainder interest that provides a future date, amount, and price at which the buyer purchases at least a portion of the protected remainder interest.
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Specification