HOME PRICE PROTECTIONTM

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HOME PRICE PROTECTIONTM
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EquityLock Financial Home Price ProtectionTM is
a revolutionary contract that protects a
homeowners' equity in the event of a real estate
market decline.
With most investments, there are ways to hedge,
or reduce the risk of loss. To date, nothing has
ever been offered to protect homeowners in their
number 1 investment.
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A Home Price Protection Contract is an
agreement between a homeowner and EquityLock
Financial that entitles the homeowner to a cash
payment when their home is sold.
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Home Price Protection pays the owner upon
resale of the property to the extent that a
geographically-defined index of housing prices
decreases from its level at the time the contract
was first purchased.
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Each Home Price Protection contract refers to a
relevant House Price Index (an aggregate of
local housing prices). If the index has
dropped at the time the house is sold,
EquityLock will pay the homeowner the
percentage of the index drop multiplied by the
value of the home at the time of the Home Price
Protection contract.
Contract Index 100 New Index 90
Change 10
Home Value at Contract 200,000 200,000 x 10
20,000 Claim

• Homeowners do not qualify for a claim in the
  event of
• Natural disaster resulting in devastation of the
  home.
• Foreclosures
• Resale's that are not at arms length. No relative
  sales. Closings will be verified.

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The EquityLock Home Price Protection contract
is designed to be able to pay homeowners in a
declining market whether one local market or the
real estate markets on a national level are in
decline.
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Home Price Protection is available for any whole
ownership real estate products.

• Single Family
• Townhomes
• Condos
• Lots

It does not matter how long the home has been
owned. 6 months.60 years Or in escrow for
closing Any Homeowner or Home Buyer Can
Qualify!
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Below are a few examples of how Home Price
Protection contracts would pay customers (or
expire) in particular situations. Example In
2008, Mr. Jones purchases a home for 300,000 and
an EquityLock Home Price Protection contract for
4,500. The local index at the time is 100. In
2011, Mr. Jones sells the home under one of the
following potential scenarios Scenario A Mr.
Jones sells the home for 350,000 and the local
index in his area is 105. Mr. Jones sells him
home for a profit and the Home Price Protection
contract terminates with no value. Scenario
B Mr. Jones sells the home for 290,000 and the
local index has fallen to 90. EquityLock
Financial pays Mr. Jones 30,000 at the time of
sale (the local index fell 10 therefore a
payment of 10 of the original purchase price is
paid). Scenario C Mr. Jones sells the home
for 350,000 and the local index has fallen to
90. Mr. Jones receives a payment of 30,000, even
though he did not lose money on the home. (The
local index fell 10 therefore, a payment of 10
of the original purchase price is paid.) Below
is a table summarizing the previous scenarios
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What kind of a Product is this? Is this
Insurance? No. A homeowner does not have an
insurable interest in the market index.
See NY General Counsel Opinion 5-1-2002 (2).
Compare also weather derivatives which is not
regulated for lack of insurable
interest. Is this an Investment? No. It is
not entered into with the attempt to make
money. It is a private contract a risk
reduction tool unregulated by the State or
Federal Governments.
The transaction is structured as a contract, and
not as an insurance policy therefore the payment
is made if the market index falls, regardless of
whether you sell the home for more or less than
what was paid for it.
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How Home Price Protection Works
Premium Pricing Contracts will be underwritten
individually and typically priced between 1.5
and 3 of the home value. The average contract
price is approximately 2. Individual market
characteristics will determine the contract
price. Various factors impact the price of a
contract, including prior home ownership history
employment history family status whether the
home is the primary or secondary residence, owner
occupied or not, etc. Geographic and market
considerations are based on industry and our
proprietary analysis of the market. In addition,
there may be limits on how many Home Price
Protection contracts EquityLock Financial will
enter into in a specific area. Exclusion and
Limitations Coverage is effective 18 to 36
months after purchase (depending on
geographic/market considerations) and continues
for a period of 15 years. Homeowners will have
the right to collect payment if they have paid
the contract premium they sell their home within
a 15-year period and if on the day the home is
sold the homes area index is less than 100 of
the value of the original agreement date. They
may not collect a payment if the sale of the home
was to a related party.
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• How to Pay for It
• The ultimate goal is to establish a real estate
  industry where a HPP product is offered via the
  Seller, in most all circumstances (see Strategic
  Partner and Bulk Sale Section) In this scenario
  the premium is paid for by
• The Builder or Developer
• The Realtor
• The Seller of a home
• The Mortgage Company
• Rolled into the mortgage

In many circumstances the Homeowner will need to
cover the cost of the premium.
Make a one time payment. Finance it
through EquityLock Financial. Use
your homes equity. Pay with a credit
card.