Equity Protection, by Working Equity Inc. claims to protect a mortgage from future equity losses during a sale. The product
charges a one-time fee of 1-2.5% of your home’s value, determined by the company, depending on your market area and promises to reimburse the seller the difference between the average market value of the home during the sale and the actual sale amount. The conditions are that the seller cannot sell the home within the first two years.

The plus side is that if a seller decides to sell a home for 5% less than the starting contract value, Working Equity still promises to reimburse them the average value loss within that market. For example, if the average value loss in the area was 10%, then the seller would still receive the 10% minus the initial contract 1 – 2.5% contract fee.

Equity Protection is not currently backed by a reinsurance but the company states that it’s in the works.

If a person plans on selling their home after 2 years and there is a good chance that the property value will decrease over 10% within that time, then this may be a good investment. However, if it does not, then you may have lost out on thousands of dollars.

This brief news posting was provided to you by Pay1Day.com, a company specializing in immediate cash assistance to borrowers.