"Point" wants you to sell them a percentage of your Home Equity!

Homeowners may start getting solicitations from a company called Point. Basically a homeowner can go to the website, provide information about their home and their financial history. Point will then make them an offer to purchase some equity usually between 5 and 15 percent of their home’s value. After additional screening including supplying more financial information, allowing Point to to pull credit and a home appraisal—at the expense of the homeowner—Point will charge homeowners a 3 percent processing fee and an escrow fee, and then provide them with the agreed upon loan amount. The way Point will make money is If the house rises in value, the homeowner owes Point 20 percent of the overall increase, which could wind up being a pretty hefty chunk of change in exchange for a 10 percent cash advance. Also they place a lien on the property so they are assured to recoup their investment. A homeowner will also want to be mindful that they may be Providing point with the ability to foreclose on the equity position that Point has. If you are thinking of doing this be sure to do your research and check with your local bank for Home equity lines of credit as well.
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