HouseBit for Lenders
HouseBIT simpliﬁes and automates almost everything related to buying a home or investing in real estate through a virtual purchase environment. This environment encapsu-lates the purchase into one all-inclusive transaction for buyer instead of having to complete a myriad of complex, costly and time consuming tasks. After the purchase, the property then stays within the capsule to facilitate all
on-going tasks such as payments and maintenance. And if owners want to sell the property, Housbit uses the same capsule in the same virtual environment to simplify the sale.
The underlying legal process is through a “Contract for Deed” which streamlines the purchase process and provides the lender with additional security as the lender maintains title to the property through HouseBit until all payments are completed on the loan at which time the buyer automati-cally receives full title to the property through a transfer of the deed.
All HouseBit properties are provided with a one year warranty covering everything except normal maintenance.
This transfer of deed is recorded on a blockchain in what is known as a smart contract. The smart contract ensures that the transfer of deed will occur as stipulated and the blockchain provides a safe and unalterable record of the smart contract.
The buyer under Contract for Deed is still an equitable owner of the property and the contract is recorded with the local county registry.
Under a HouseBIT transaction, buyers typically cannot claim property protection under Homestead Exemptions and so lenders and HouseBit have an immediate remedy if buyers to not make required payments. This additional protection for lenders mitigates lending risk.
In order to facilitate quick closings, HouseBIT uses reputa-ble partners such as Florida-based Precision Title Services Inc., preferred lenders for ﬁnancing and experienced attorneys.