Migliaccio & Rathod LLP is investigating whether homeowners who entered into home equity investment agreements with Splitero were adequately informed about the costs, property valuation adjustments, and future settlement obligations associated with their agreements.
Splitero offers homeowners access to money based on their home’s equity without requiring traditional monthly loan payments. In exchange, homeowners agree to make a future payment determined by the terms of their home equity investment agreement.
Unlike a conventional home equity loan, the amount owed under a home equity investment agreement may depend on the property’s future value, contractual valuation adjustments, and the provider’s share of appreciation.
One potential concern involves the use of an adjusted starting property value. If an agreement calculates appreciation from a value lower than the home’s original appraised market value, the resulting settlement amount may be substantially different from what a homeowner expected.
Migliaccio & Rathod is investigating whether Splitero homeowners received accurate information about these calculations and whether the amounts demanded at settlement were consistent with the representations and contractual terms they received.
Homeowners May Have Experienced:
- Receiving a home equity investment without fully understanding the potential future settlement costs;
- Discovering that an adjusted or discounted starting property value affected the payoff calculation;
- Receiving a payoff quote substantially higher than anticipated;
- Being surprised by the amount owed when selling or refinancing their home;
- Discovering that Splitero appreciation-sharing calculation differed from earlier illustrations; or
- Paying more to settle the agreement than expected based on the representations they received.
Potential Claims May Include:
- Misleading representations concerning home equity investment costs;
- Improper property valuation or appreciation-sharing calculations;
- Breach of contract where settlement amounts differ from contractual requirements;
- Unfair or deceptive trade practices;
- Misrepresentation of material financing terms; or
- Violations of applicable consumer-protection laws.
Signs You May Be Affected:
- You entered into a home equity investment agreement with Splitero;
- Your agreement included a contractual property valuation adjustment;
- You received a payoff quote significantly higher than expected;
- You sold, refinanced, or attempted to settle your agreement;
- Your settlement amount differed from the illustrations or explanations you received; or
- You have an agreement, appraisal, payoff statement, or other records documenting the discrepancy.
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.