New Security Instrument Provides Alternatives to Debt

May 6, 2010 - PRLog -- The Real Estate Investing Minute, a weekly web tv show dedicated this week’s episode to Home Equity Fractional Interests, or HEFI. Kevin Hardin of EquiDebt Solutions joined the show to provide real estate investors with an overview of the patented HEFI security instrument.  

Mr. Hardin explained that HEFI can be used in place of debt for real estate investors who want an interest in a property but do not want the risk of carrying debt in a second, third or fourth position.  Carrying this equity instead of debt provides more protections for the investor in the case of a mortgage default on the first position loan in the future.

If a home that has a HEFI either goes into default or the home owner does not comply with the requirements of the HEFI the investor is notified and has the option to exercise their option on the equity in the form of converting their interest to a tenant in common entity.  This affords the real estate investor the opportunity to control the home with the other owner(s).

Kevin also shared that this instrument has the potential to assist mortgage holders with a new and creative way to structure loan modification programs while reducing the principal amount.

For more information about HEFI and using it as a real estate investment tool, visit thereiminute.com/alternatives-to-owner-financing or equidebtsolutions.com

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