Migliaccio & Rathod LLP is investigating whether home equity investment providers improperly calculated settlement amounts by failing to apply contractual credits for qualifying homeowner-funded renovations and improvements.
Home equity investment agreements allow homeowners to receive money upfront in exchange for a contractual share of their property’s future value or appreciation.
During the agreement, homeowners may make substantial improvements to their properties, including kitchen renovations, bathroom remodeling, additions, roofing replacements, or other projects that increase the home’s market value.
Some home equity investment agreements provide credits or adjustments designed to account for qualifying homeowner-funded improvements when calculating the provider’s share of appreciation.
For example, a homeowner might spend $80,000 renovating a property during an equity-sharing agreement. If those improvements increase the home’s market value, the provider’s settlement calculation may capture a portion of that increase unless an applicable contractual adjustment is properly applied.
The amount spent on renovations does not necessarily equal the resulting increase in property value. However, where an agreement provides a specific method for crediting qualifying improvements, the provider must apply the terms of that agreement.
Migliaccio & Rathod is investigating whether providers have failed to apply required credits, improperly denied qualifying adjustments, or calculated settlement amounts inconsistently with their contractual obligations.
Homeowners May Have Experienced:
- Spending substantial amounts on renovations during a home equity investment agreement;
- Being told that qualifying improvements would be excluded from appreciation-sharing calculations;
- Discovering that the final payoff included value attributable to homeowner-funded improvements;
- Having a requested improvement credit denied despite meeting contractual requirements;
- Receiving a smaller improvement adjustment than the agreement required; or
- Paying a higher settlement amount because a contractual improvement credit was omitted or incorrectly calculated.
Potential Claims May Include:
- Failure to apply contractual improvement credits;
- Improper appreciation-sharing calculations;
- Breach of contract;
- Misleading representations concerning renovation credits;
- Unfair or deceptive trade practices; or
- Recovery of excess settlement payments.
Signs You May Be Affected:
- You entered into a home equity investment agreement;
- You completed substantial renovations or improvements while the agreement was active;
- Your agreement provided for qualifying home improvement credits or adjustments;
- You requested an improvement credit that was denied or reduced;
- Your settlement calculation did not reflect an improvement credit required by your agreement; or
- You have renovation invoices, appraisal reports, payoff statements, or correspondence documenting the issue.
If you have encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call.