Patent ID: 7213001

Claim:
A method for restructuring the debt of a debtor who has an interest in a distressed property comprising the steps of: calculating a balance of the debtor's personal debt (B); determining a mortgage balance remaining on the property (M); determining the property's present appraised value (A); calculating a first closing cost (C 1 ) for purchasing the property from the debtor based upon the mortgage balance remaining on the property (M); calculating a second closing cost (C 2 ) for reselling the property back to the debtor based upon the present appraised value of the property (A); calculating a down payment (D) for reselling the property back to the debtor at the appraised value of the property (A); determining a total cost (T C ) according to the equation T c =(B+M+C 1 +C 2 +D) for purchasing the property from the debtor, satisfying the debtor's personal debt and reselling the property back to the debtor at a present appraised value of the property; comparing the total cost (T C ) to the present appraised value in the property (A) to determine if the present appraised value of the home (A) exceeds the total cost (T C ) by a preselected amount; and purchasing said property from said debtor, satisfying said debtor's balance of personal debt (B), and reselling said property back to said debtor at the present appraised value of the home (A) if said appraised value of the property (A) exceeds said total cost (T C ) by said preselected amount.