DFW Properties Foreclosure Property Home Equity Structure
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Equity Exchange Program

# Estimated Home Value

For the purpose of calculating the annual payment required and calculating the value at which underpaid income converts to additional equity rights, we need an updated estimated home value at every year between the date of the initial appraisal and the date of the eventual property sale. Getting an annual appraisal would be too expensive, so instead we make the assumption that the property's value changes in direct proportion to a regional home price index, such as the .
Input:
Initial Appraised Value
$0000000 600000 Home Price Index at Investment Date 000 200 Home price Index at year n: 000 426 Output: Interim Home Value in year n: =$
600000
* (
426
/
200
)
=$600000 * 2.13 =$
1278000