Tri Cities WA Homeowners Equity can be Tapped by Wall Street
Stop Resale Fees
Wall Street has come up with yet another way of getting into Tri Cities WA (and everyone else) homeowner pockets.
Freehold Capital Partners advocates for the Wall Street Home Resale fees system. They describe it as a “real estate financing solution designed to more efficiently structure the economics of real estate projects.” How do they “efficiently” do this?
Hidden from sellers on the first sale of a home (the first sellers being the developer/builder of the home) the fees become apparent only after this first transaction. After that, they allow a host of third-parties to collect a portion of the selling price on EVERY sale for nearly a century after the house is first sold.
That’s right- they take a percentage of your equity when you sell your home. What do you, the homeowner, get in return for this fee? Bupkiss!
How is this done? Freehold Capital Partners works with the developer/builder to put this scheme into the covenant of the home, for up to 99 years. They are doing this systematically, state by state. Then Freehold bundles the fees, assumes a total amount that a house will produce over nearly a century and sells them off for an immediate profit on the secondary market.
Sixteen states have banned this practice. But Washington is not one of them.
A diverse coalition of interests, including the National Association of Realtors, have organized to stop these fees. These fees, also called “Private Transfer Fees”, hurt every homeowner with this covenant and create yet another way for Wall Street to line their pockets at American’s expense.
If you think you may have this type of covenant on your home, click here. This site will be updated with what actions have been taken on your behalf to stop this practice.
The Tri City Home Team believes keeping Tri Cities informed of actions taken against the homeowners, and potential homeowners, of our community is just as important as the services we provide them in finding or selling a home.
