A sample sale scenario of a $1,500,000 home can be used to show how the mortgage principal repayment is used.
Let’s say an Ourboro co-owned home is sold for $1,500,000. First step, the bank will be paid back, just like in a traditional home sale. If there was $700,000 outstanding on the mortgage the bank would receive their $700,000 and there would be $800,000 left in sale proceeds.
Now, in this example let’s say, while the co-owner lived in the home, they paid $100,000 towards their mortgage principal. That $100,000 would come out of the sale proceeds and go directly toward the homeowner’s share of proceeds. This is their mortgage principal repayment. The remaining sale proceeds would then be divided between the co-owner and Ourboro based on our equity split in the property.