Patent ID: 8543494

Claim:
A loan modification system comprising: a memory system comprising information stored therein about a loan on a residence, wherein the loan comprises a principal balance and payment terms, and wherein the loan is an original HELOC loan on the residence; and a processing system operatively coupled to the memory system and configured calculate a modified loan payment schedule for a customer based on a loan modification plan and store the modified loan payment schedule in the memory system, wherein the loan modification plan comprises: modifying the original HELOC loan on the residence, wherein modifying the original HELOC comprises: creating new contract terms for the original HELOC loan by dividing the loan balance of the original HELOC loan into a first loan portion and a second loan portion, wherein the first loan portion is subject to payment terms of the original HELOC loan, and wherein payment on the second loan portion is deferred until termination of the new contract terms for the first loan portion of the original HELOC loan, wherein termination occurs at the sale of the residence; receiving, at termination of the loan modification plan, a portion of appreciation of a total appreciation that occurs from a first value of the residence at a first time proximate establishment of the loan modification plan to a second value of the residence at a second time proximate termination of the loan modification plan and forgoing the second loan portion when the portion of appreciation is less than the second loan portion; receiving, at the termination of the loan modification plan, the second loan portion and forgoing the portion of appreciation when the portion of appreciation is greater than the second loan portion; and forgoing, at the termination of the loan modification plan, the second loan portion when the first value of the residence at the first time proximate establishment of the loan modification plan is greater than the second value of the residence at the second time proximate termination of the loan modification plan.