I have no idea how this is going to work legally. It'll be pretty much unprecedented when it comes to proving to the court that the tokens represent actual holdings of the mortgage used to back the house.
Theoretically, it may be able to work given that the house is used as collateral. However, even with that said I would highly doubt you'll be able to find backers of this kind of magnitude internationally, as I said there is just too much of a legal risk.
Also, I'd say that 4% per annum seems a bit on the low side. Houses are much less liquid than cryptos despite them being somewhat more stable in value in certain instances, making it less attractive as a collateral. All of these risks that the banks isn't willing to take will apply to the funder of your security as well.
Topic: [idea] put my house on the blockchain? (Read 180 times)
If I understand, you want to buy an house and use it as collateral. Loaned amount will be tokenized and each token will give a % of property of the house.
Seems a good Idea, but you have to consider that until buyback will be completed house will not be fully yours, so can happen that some token holders will ask you an extra price for sell his tokens!
Otherwise can happen that if you are dishonest and won’t pay you due on time, some tokens holders should sell his tokens at lower price ( so you will be encouraged to pay late).
Is not easy as seems
I was just thinking, a lot of houses near me sell for $50 000 to $100 000. If I used a token to represent each share of the house and bought them back at $1000/token at a time with each user gaining 4% of the value of their token every year, would that work (having everything held by solicitors in the mean time). I can't get a mortgage as my earnings are international and the bank managers have caught on that I could just easily disappear... Each token would be bought back on a semi monthly basis?
I was just thinking, a lot of houses near me sell for $50 000 to $100 000. If I used a token to represent each share of the house and bought them back at $1000/token at a time with each user gaining 4% of the value of their token every year, would that work (having everything held by solicitors in the mean time). I can't get a mortgage as my earnings are international and the bank managers have caught on that I could just easily disappear... Each token would be bought back on a semi monthly basis?
Jump to: