Patent ID: 8694421

Claim:
A computer implemented method of structuring a supplemental interest mortgage, comprising: issuing a principal debt obligation to a borrower, wherein the principal debt obligation is issued over a communications network connected to (i) a computer processor on which the principal debt obligation is calculated and (ii) a storage memory in which the principal debt obligation is stored; wherein the principal debt obligation comprises (i) a principal loan based on a principal debt amount and having original terms, and (ii) a principal interest to compensate a lender for the borrower's use of the principal debt amount; and determining on the computer processor a supplemental debt obligation to the borrower based on the principal debt amount, wherein the supplemental debt obligation is issued over the communications network connected to the computer processor on which the supplemental debt obligation is calculated; determining, with instructions loaded into the computer processor, whether at least one risk characteristic stored in the storage memory has been reduced to at least one predetermined condition by comparing the risk characteristic with the predetermined condition; cancelling the supplemental debt obligation when the risk characteristic is reduced to the predetermined condition without cancelling the principal debt obligation and without changing the original terms and the principal debt amount of the principal debt obligation; wherein the supplemental debt obligation comprises a supplemental interest based on the principal debt amount to compensate the lender for a risk of nonpayment by the borrower; and wherein the principal debt obligation and the supplemental debt obligation are secured by a single security instrument.