While homeownership often leads to appreciation in value over time, it is not guaranteed. If your Home Wealth Share agreement with Steadworth reaches its end and your home has not appreciated in value, it's important to understand your obligations and the options available to you.
Obligations
Even if your home has not appreciated, you are still obligated to fulfill the terms of your Home Wealth Share Agreement. This means you are responsible for repaying Steadworth its original investment amount, along with any applicable fees, such as the exit fee.
Options
If your home has not appreciated at the end of the contract term, you have several options:
Sell the Property: You can sell the property and use the proceeds to repay Steadworth. In this scenario, you would not receive any Wealth Share Proceeds, but you would fulfill your obligations under the agreement.
Refinance the Mortgage: You can refinance your mortgage to access cash and use the funds to repay Steadworth. This option may be feasible if you have built up sufficient equity in the home through mortgage payments.
Extend the Contract Term: If your initial contract term was for 5 years, you may have the option to extend it for an additional 5 years. This may be beneficial if you believe the property will appreciate in value in the future. However, extending the contract term may involve an adjustment to the Wealth Share percentages, with Steadworth receiving a larger share of the future appreciation.
Negotiate with Steadworth: You can contact Steadworth to discuss your situation and explore alternative solutions. Depending on the circumstances, Steadworth may be willing to work with you to find a mutually agreeable solution.
It's important to communicate with Steadworth as soon as possible if you anticipate that your home may not have appreciated at the end of the contract term. By discussing your options and working collaboratively, you can find a solution that meets your needs and fulfills your obligations under the agreement.