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TRADE YOUR DEBT ™ - ILLUSTRATIONS

 

Secured Debt (home mortgage, home equity, business loan, automobile loan etc.)

 

Borrowers who have a title to a property and an underlying encumbrance that they cannot or do not wish to make payments on anymore can post their debt on AssetFair.com. Its TradeYourDebt™ program enables borrowers to post their debt, along with the asset their obligation is secured by, on AssetFair and, if the asset value substantially exceeds the debt obligation, name an asset they would wish to exchange their remaining equity for. Once the listing is complete, the borrower can check the “matches”, i.e. assets offered for exchange that match the borrower’s stated preferences (asset category and location) and the computed net exchange value (see Exchangeable Equity). Apart from producing the matches, the encumbered property is now listed as an exchangeable asset and will likely generate offers from other active AssetFair members.  


Synopsis:

 

Mr. A has a house of fair market value of $400,000 and a mortgage of $200,000 on it. He lists the debt on TradeYourDebt™, under “Mortgage” category and adds the asset (the house) description. In the Preferred Exchange section of the listing, Mr. A indicates he would consider trading his Asset Equity ($200,000) for an RV or a boat. As a “Match” delivered to Mr. A’s “My Listings” inbox, AssetFair suggests a listing by Ms. B who owns a yacht valued at $150,000 free and clear. Mr. A decides to Make an Offer, using the ready-made AssetFair screen, to Ms. B to trade his encumbered house for the boat.  Ms. B is interested, she is willing and qualified to assume the $200,000 mortgage (or ready to pay it off in cash), and responds to Mr. A. The two can parties can negotiate further whether and how to settle for the difference in the equities being exchanged (Mr. A’s stated Exchangeable Equity is $200,000 vs. Ms. B states her boat net value at $150,000).

 

Unsecured Debt (medical bills, credit card debts, student loans, income tax liens etc.)

 

There is a number of debts, like credit card debt, medical bills, unpaid student loans etc. that people lose their sleep over. If you own an asset of higher value that you are willing to pledge against your obligation, you can list your obligation as an unsecured debt on TradeYourDebt™. Either by producing closest matches or generating active offers from other members, AssetFair is here to locate an interested party willing to take over the unsecured debt in exchange for the pledged asset in lieu of cash.

 

Synopsis:


Family C has been burdened by $20,000 medical bill and has not been able to settle it due to momentary cash flow challenges. There has been an oil painting by a recognized artist in the family, with an appraised value of $40,000 or more, but it is difficult to find a cash buyer so quickly. Family C compounds their unpaid credit card balance and lists it on TradeYourDebt™ as Credit Card Debt. They also pledge the described piece of art. Collector D, who is a regular AssetFair user locates the new listing and  makes an offer on the painting. Collector D is willing to assume, or pay the Family C’s bills off (using cash, his credit card, assuming their debt - when eligible) in exchange for the art masterpiece. Bingo! Further negotiations may lead to Collector D willing to pay $10,000 in cash or to transfer a $12,000-worth collectible he owns to Family C in order to minimize the discrepancy in Exchangeable Equity. Be creative!

 

IMPORTANT:In either debt category, secured or unsecured, your minimum Asset Equity (Asset Value less all listed debt) has to be at least $3,000!