Homeowners simply notify Unison of the improvement and apply for a “Remodeling Adjustment,” and Unison will not share in the value of that improvement in the appraisal when the home is sold. Homeowners can make home improvements, such as making a home more accessible for the elderly, without Unison unfairly benefiting from those improvements. If an issue does occur, the homeowner can ask for a special termination after three years, keep the home, get an appraisal, and pay the amount borrowed, and any profit that would be owed Unison if the house were sold. Homeowners must also stay current on their mortgage, insurance, and tax payments. Instead, a deferred maintenance adjustment will be applied. If the home is not maintained and there is a significant decrease in market value because of this, Unison will not share in the loss. Homeowners are required to live in and maintain the home in good condition. Unison does not go on title and is not a co-owner. To further clarify, should a single senior or both spouses of a couple require assisted living or skilled nursing in the near future, Unison HomeOwner Agreements are not a good option.Īs with reverse mortgages, the concern that Unison can force a homeowner to sell is not justified. If this occurs during the first three years of the agreement, and the home has lost value due to fair market conditions, Unison will not share in the loss.įor this reason, a Unison HomeOwner Agreement should be a potential source of funds for long-term care only for seniors where at least one of the spouses has no intention of moving for at least three years. Should care needs require an individual to move from their home for more than 180 consecutive days, and it is clear they will not be returning, then the Unison HomeOwner Agreement comes due. Similar to a reverse mortgage, individuals are required to live in their home during the entire term of the Unison HomeOwner Agreement. Any profit Unison would have received if the house were sold at the time of the appraisal must also be paid to Unison. In this situation, Unison will not share in any loss due to a decrease in the home’s value. At this time, the original amount received must be paid back. When one requests a special termination, a third-party appraisal is done to determine the current value of the home. Therefore, if the homeowner sells the property during the first three years, and there is a loss due to fair market conditions, Unison will not share in this loss.Īfter three years, one can request what is called a “Special Termination” and end the agreement without the house being sold. The Unison HomeOwner Agreement is intended to be a long-tem agreement. However, the agreement typically ends when the homeowner sells the property. The maximum term of the Unison HomeOwner Agreement is 30 years. The cash received by the homeowner may be used for any purpose, such as the purchase of long-term care insurance, re-modeling the home to make it accessible for the elderly, or paying for a home care worker. The homeowner then decides how much cash they need or want, which will determine the percentage of the future change in value they will share with Unison. Unison and the homeowner agree on the home’s value using an independent, licensed appraiser.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |