~ Jon James
If you have elderly or vulnerable people you care about in you inner circle be aware, and make them aware, of this! There are NEVER any “to good to be true” offers that are legit.
The Maine Bureau of Consumer Credit Protection is warning homeowners to think twice before signing up for a financial product known as a shared appreciation mortgage, or home equity investment.
These programs are often advertised as a way to get cash from your home’s equity without adding another monthly payment. But state officials say the agreements can be far more complicated than they appear.
Instead of making loan payments, homeowners receive money upfront in exchange for giving the company a share of their home’s future value. If the home’s value goes up, paying back that investment can end up costing much more than expected.
The lump-sum payment is usually due when the home is sold, the homeowner dies, or the contract expires — sometimes in as little as 10 years.
The bureau is urging anyone considering one of these agreements to carefully review the terms and understand the potential long-term costs before signing.
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