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Multi-variable, multi-party auction and process to prop-up underwater mortgages, and stabilize/restore market values

  • US 8,577,793 B1
  • Filed: 06/23/2011
  • Issued: 11/05/2013
  • Est. Priority Date: 06/23/2010
  • Status: Expired due to Fees
First Claim
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1. A process of coordinating and contractually binding one or more homeowners, one or more respective mortgage holders, and one or more investors, for financing of a home with an underwater mortgage using a computer system, said process comprising the following steps:

  • using one or more processors to execute instructions retained in machine-readable media to cause the computer system to display a website usable for a financing auction of said process;

    searching, by the respective mortgage holders, over the internet for an auction website of said process;

    registering, by at least one of the one or more respective mortgage holders and the one or more homeowners, in said auction website, by entering data therein;

    scheduling said financing auction, said financing auction occurring on a bidding platform of said auction website;

    providing the one or more investors, the one or more respective mortgage holders and the one or more homeowners with access to said bidding platform for said scheduled financing auction;

    conducting said financing auction on said bidding platform, said financing auction comprising;

    matching of an interest rate bid by the one or more investors with a monthly payment bid by the one or more homeowners, resulting in a calculated principal loan amount for a time-out mortgage loan;

    bidding, by the one or more homeowners, the one or more respective mortgage holders, and the one or more investors, for a fractional portion of a deferred recapture amount (DRA), said DRA comprising a difference between the total amount of all of the loan agreements held by the one or more respective mortgage holders and the amount of said time out mortgage loan; and

    accepting, by the one or more homeowners, the one or more respective mortgage holders, and the one or more investors, to said matched interest rate bid and corresponding monthly payment bid;

    agreeing, by the one or more homeowners, the one or more respective mortgage holders, and the one or more investors-to a term for said time-out mortgage loan; and

    to a post-auction varying scheme for said fractional portions of said DRA;

    said post-auction varying scheme for said fractional portions of said DRA comprising a buy-in method, wherein each dollar amount of monthly payment, as a percentage, remitted by the one or more homeowners above a payment required by said time-out mortgage, thereby entitling the one or more homeowners to keep an additional percentage of said DRA; and

    closing by said auction website resulting in;

    mutual rescinding of all of the loan agreements held by the one or more respective mortgage holders;

    issuing of said time-out mortgage loan, and a time-out mortgage against the home, and issuing of a home certificate, said home certificate evidencing an amount of investment by each of the one or more investors.

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