"The lawsuit contends the agreements function as loans that ultimately require repayment of the initial cash amount plus what amounts to interest, often through a large lump-sum payment at the end of the term."
"Homeowners will almost certainly be required to repay every penny they receive, plus interest in the form of a significant lump sum balloon payment, the complaint states."
"The suit also alleges that Unison structures its agreements to maximize its own returns while limiting risk, including practices like discounting a home's initial value."
"As a result, the plaintiffs claim, homeowners may walk away from a home sale with little remaining equity despite years of ownership."
The Kanes challenge Unison's product, which offers upfront cash for a share of future home value, claiming it traps them in a misleading agreement. Unison estimates the Kanes will owe $278,618 to terminate the contract, despite receiving just over $87,000 initially. The lawsuit argues that the product functions as a loan, requiring repayment of the cash plus interest, often necessitating home sales. It also claims Unison's practices maximize its returns while limiting homeowner equity, leading to financial strain for homeowners.
Read at www.housingwire.com
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