Could anyone tell me why this would or wouldn't work? What if you could sell a piece of your house (that you own, not that the bank owns) for some money. Then when you sell the house, the person who purchased the piece of your house gets that much % of it back. This is different than a reverse mortgage where you the homeowner has to pay interest back and that is what the bank makes money on. It is also different than a mortgage backed security, which is values based upon the interest of the mortgage. You are purely betting that the value of the home will go up or down. If you want to cash out earlier you would sell to some other buyer or even back to the homeowner. Because there are so many houses, there might need to be aggregation or a large market maker to provide liquidity. Could a model like this work?
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