Barrett Henry is a Broker Associate at REMAX Collective with 23+ years of Florida real estate experience. He helps homeowners across all 67 Florida counties evaluate their options when multiple liens or financial products complicate the foreclosure picture. Direct service in the Tampa Bay area; referral connections statewide.
What Is a Home Equity Agreement?
A home equity agreement (HEA)-- also called a home equity investment (HEI) -- lets you receive a lump sum of cash now in exchange for giving an investment company a share of your home's future value. Unlike a traditional home equity line of credit (HELOC), there are no monthly payments. You settle the agreement when you sell, refinance, or when the agreement term expires (typically 10 to 30 years).
HEA companies currently operating in Florida include Hometap (which is available in Florida as of 2025), Unison, and Point. These products have grown significantly in Florida's rising-equity market, where many homeowners accumulated large equity positions but are asset-rich and cash-poor.
A critical feature most Florida homeowners do not fully understand: the HEA company records a lien against your property to secure their interest. This lien has consequences when your financial situation changes -- including when you fall behind on your mortgage.
How the HEA Lien Works in Florida
When you sign an HEA, the investment company records a lien (or a memorandum of option/agreement) in the county property records where your home is located. This establishes the company's legal interest in your property and is how they protect their share of the future appreciation.
HEA providers typically require a subordinate (second) lien position, meaning the first mortgage takes priority over the HEA lien. As a condition of the HEA, your first mortgage lender must typically consent to or acknowledge the HEA lien, and the HEA company must be named on your homeowners insurance policy as an additional interest party.
Florida's lien priority rules follow the "first in time, first in right" principle, with some exceptions (property tax liens have super-priority). Because the first mortgage was recorded before the HEA lien, the first mortgage takes priority over the HEA in foreclosure. This has significant consequences if you default on your mortgage.
What Happens to Your HEA When Your Mortgage Lender Forecloses
When your first mortgage lender forecloses in Florida, the foreclosure sale generally wipes out all junior liens. The HEA lien is a junior lien. This means:
- The HEA company's lien is extinguished at the foreclosure sale. The buyer at auction takes title free and clear of the HEA obligation.
- If the auction price exceeds your mortgage judgment, the surplus goes to junior lienholders in order of priority -- the HEA company first (up to its lien amount), then you. See our guide on Florida foreclosure surplus funds.
- If the auction price does not exceed the mortgage, the HEA company gets nothing. The company bears this loss; they are not entitled to a deficiency judgment against you for their investment loss.
The practical takeaway: a first mortgage foreclosure is financially catastrophic for the HEA company, which is why HEA agreements contain provisions allowing the company to act when a default is detected.
Early Termination and Default Provisions in HEA Agreements
Most HEA agreements define "triggering events" that allow the company to demand immediate settlement. Common triggering events include:
- Filing of a foreclosure lawsuit (lis pendens) against your property
- Failure to maintain the property or carry required insurance
- Transfer of title without the HEA company's consent
- Taking out additional liens that exceed allowed thresholds
- Your death (for some agreements)
If a triggering event occurs, the HEA company may demand that you immediately buy out their share of the equity at the current appraised value. If you cannot pay -- because you are in financial distress and that is why the foreclosure was filed -- you may be unable to comply. This can accelerate your financial crisis and create additional legal exposure.
Read your HEA agreement carefully and understand the triggering events before a lis pendens is filed against your property.
Consumer Protections and HEA Controversy in 2026
HEAs are a relatively new financial product, and their regulatory status is evolving. In June 2026, the National Consumer Law Center (NCLC) published an issue brief arguing that some home equity investment products should be treated as loans subject to the Truth in Lending Act (TILA) and its disclosure requirements. Hometap is facing multiple TILA-related lawsuits as of 2026, with borrowers alleging the product failed to disclose its true cost as an annual percentage rate (APR).
For Florida homeowners who signed an HEA, this evolving legal landscape may affect your rights. If you believe you were not given accurate disclosures about your HEA, consulting with a consumer protection attorney before your foreclosure sale is worth considering.
Your Options if You Have an HEA and Are Facing Foreclosure
If you have a home equity agreement and are behind on your first mortgage in Florida, here are your main options in order of preference:
- Pursue loss mitigation on the first mortgage first. Apply for a loan modification or forbearance to stop the foreclosure. If you can keep your home, the HEA continues on its normal terms.
- Sell the home before foreclosure. If you have equity above both the mortgage balance and the HEA buyout amount, a pre-foreclosure sale is often the best outcome. You pay off the mortgage, settle the HEA at its contractual terms, and walk away with remaining equity in your pocket.
- Contact the HEA company directly. Some HEA companies will negotiate a reduced settlement in a distressed situation, particularly if the alternative is getting nothing at a foreclosure auction. Document all communications in writing.
- Short sale. If the home is underwater relative to the first mortgage, a short sale requires the first mortgage lender to approve the sale for less than owed. The HEA company may receive nothing. Coordinate with both the lender and the HEA company when pursuing this option.
- Consult a housing counselor and attorney. A HUD-approved housing counselor (1-800-569-4287) can help you map your options at no cost. A Florida real estate attorney can review your HEA agreement for triggering event risks and consumer protection claims.
Related Resources
- HELOC and Foreclosure in Florida
- Junior Liens in Florida Foreclosure
- Florida Foreclosure Surplus Funds
- Sell Before Foreclosure: Protect Your Equity
- Short Sale in Florida
- Florida Loan Modification Guide
- Florida Mortgage Forbearance
- Florida Foreclosure Process Guide
- Free HUD Housing Counselors in Florida
- Florida Foreclosure Checklist
Have a home equity agreement and facing foreclosure in Florida? Contact us today for a free consultation -- no cost, no obligation.
