(19) United States
(12) Patent Application Publication (io) Pub. No.: US 2003/0233324 Al
Hammour et al. (43) Pub. Date: Dec. 18,2003
(54) DECLINING BALANCE CO-OWNERSHIP FINANCING ARRANGEMENT
(76) Inventors: Mohamad L. Hammour, Paris (FR);
Harvey E. Weiner, Bethesda, MD
(US); James M. Milano, Arlington, VA
NIXON & VANDERHYE, PC
1100 N GLEBE ROAD
ARLINGTON, VA 22201-4714 (US)
(21) Appl. No.: 10/406,010
(22) Filed: Apr. 3, 2003
Related U.S. Application Data
(60) Provisional application No. 60/369,341, filed on Apr. 3, 2002.
Publication Classification (51) Int. CI.7 G06F 17/60
A Sharia compliant financing arrangement for home purchases and refinances that does not involve the payment ol interest is disclosed. The financing arrangement is a declining balance Co-Ownership financing arrangement in which a limited liability affiliate of the party financing the purchase, called a co-owner, and the party borrowing the funds for the purchase, the consumer, co-own a residence through a tenancy-in-common. The consumer makes monthly payments to repay the amount funded through which the consumer increases his or her real property or Co-Ownership interest in the residence, while correspondingly decreasing the interest held by the co-owner. Gradually, by making the monthly payments, the consumer acquires the full ownership interest in the residence. The monthly payment has two parts, a profit payment and an acquisition payment. The acquisition portion of the payment is applied to the consumer's ownership interest, thereby increasing his ownership interest in the property and decreasing the co-owner's interest in the property. The co-owner's rights interest in the financing arrangement are transferable to a secondary market investor.