Tapping Home Equity Without Borrowing?

Syndicated real estate columnist Kenneth R. Harney writes:

• Improbable as it sounds at a time when American homeowners have lost billions in equity holdings, a new industry is taking shape to help them tap portions of their equity wealth without incurring traditional mortgage debt or making interest payments.

• Three companies with sophisticated capital market backers — Rex & Co., Equity Key and Grander Financial — are offering cash to owners who agree to cut them into some of the future appreciation of their properties. The cash typically represents a fraction of the current market value of the home and rises with the percentage of future appreciation the owner is willing to share.

For more, see A New Way to Tap Home Equity.