Home resale price protection plan

• US 8,589,191 B1
• Filed: 10/05/2012
• Issued: 11/19/2013
• Est. Priority Date: 04/20/2009
• Status: Active Grant

• Current Assignee: Pricelock Finance LLC
• Original Assignee: Pricelock Finance LLC
• Inventors: Menzies, Steven M., Overton, Christopher W., Silver, Jeffrey A.
• Primary Examiner(s): Merchant, Shahid
• Assistant Examiner(s): Ziegle, Stephanie M
• Application Number:
  US13/645,563
• Time in Patent Office: 410 Days
• Field of Search: 705/4, 705 35- 45
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A Home Resale Price Protection Plan provides a payment to a homeowner should the homeowner have to sell his or her house at a loss due to a drop in a Real Estate Price Index. In exchange for an upfront fee, the homeowner would receive a payment for the lesser of their actual loss or the loss calculated by multiplying their original purchase price by the proportional drop in an appropriate housing price index. The Home Resale Price Protection Plan is contingent on the death, disability or other hardship faced by the homeowner. The Plan may be insured. The benefits of the Plan may be payable by an insurance company.

Claims

1. A computer implemented method for a financial service provider to provide a Home Resale Price Protection Plan, said method comprising:

a. receiving house sale information comprising;

i. a price for a house;

ii. an identity of a buyer of said house; and

iii. a start date for said Home Resale Price Protection Plan to be in force;

b. entering said house sale information into a computerized transactional system;

c. determining by said computerized transactional system a premium for said Home Resale Price Protection Plan, wherein said step of determining said premium is based at least in part on;

i. said price for said house;

ii. a geographic region said house is located in;

iii. a frequency of housing price drops in said geographic region, said frequency corresponding to an exponential time constant for housing price drops in the range of 5 years to 20 years;

iv. a rate of sale of houses in said geographic region, said rate of sale corresponding to an exponential time constant for rate of sales in the range of 3 to 12 years; and

v. at least one of the probabilities that said buyer will experience death, disability, hardship or combinations thereof during a coverage period of said Home Resale Price Protection Plan; and

d. providing by said computerized transactional system a contract for said Home Resale Price Protection Plan wherein said contract comprises an obligation to provide compensation to said buyer of said house contingent at least in part on a drop of a House Price Index applicable to said house during said coverage period.

2. The method of claim 1 which further comprises the step of providing said contract to a real estate broker.

3. The method of claim 1 wherein said geographic region is the state where said house is located.

4. The method of claim 1 wherein said step of determining said premium limits said premium to a range of 19 to 98 basis points of said house price.

5. The method of claim 1 wherein said step of determining said premium limits said premium to at least 34 basis points of said house price.

6. The method of claim 1 wherein said obligation is insured.

7. The method of claim 5 wherein said insurance for said obligation is Contractual Liability Insurance.

8. The method of claim 1 wherein said obligation is payable at least in part by an insurance company.

9. A computerized transactional system for implementing a method for a financial service provider to provide a Home Resale Price Protection Plan, said system comprising:

a. an input device configured to receive house sale information comprising;

i. a price for a house;

ii. an identity of a buyer of said house; and

iii. a start date for said Home Resale Price Protection Plan to be in force;

b. computer readable instructions to cause said system to carry out the steps of;

i. determining a premium for said Home Resale Price Protection Plan, wherein said step of determining said premium is based at least in part on;

1. said price for said house;

2. a geographic region said house is located in;

3. a frequency of housing price drops in said geographic region, said frequency corresponding to an exponential time constant for housing price drops in a range of 5 years to 20 years;

4. a rate of sale of houses in said geographic region, said rate of sale corresponding to an exponential time constant for rate of sales in the range of 3 to 12 years; and

5. at least one of the probabilities that said buyer will experience death, disability, hardship or combinations thereof during a coverage period of said Home Resale Price Protection Plan; and

ii. providing a contract for said Home Resale Price Protection Plan wherein said contract comprises an obligation to provide compensation to said buyer of said house contingent at least in part on a drop of a House Price Index applicable to said house during said coverage period; and

c. an output device configured to provide said premium and said contract.