Tenant/Buyer Disclosure

by admin on January 15, 2009

Important disclosures to Tenant/Buyer

 

The State of North Carolina has not reviewed and does not approve, recommend, endorse, or sponsor any real estate resale transaction.  The information contained in this disclosure has not been verified by the State.  If you have any questions about this transaction, consult an attorney before you sign a contract or agreement.

 

Disclosure Document

 

Your property located at ____________________________________ is currently in foreclosure.  This property which you have agreed to allow Trademark Investments, Inc to acquire in order to stop the foreclosure is subject to an outstanding deed of trust or mortgage in the name of _______________________________________.  Your monthly rental payments made each month to Trademark Investments, Inc will go directly to pay this mortgage each month however, the person listed above is the one legally obligated to pay the deed of trust or mortgage.  If timely payments are not made to the lender, the lender may foreclose on the property again and extinguish any rights you may have in the property.  You may at anytime call Trademark Investments, Inc or the mortgage lender to ensure the payments are being made to the lender directly after your rent payment is processed.

 

Foreclosure Options for Homeowner


1. Reinstatement of Loan (Cure): This option is paying the lender everything that is owed in one lump sum to include missed payments, any late fees associated with these payments, foreclosure fees, legal fees and the principal owed during the delinquency. A cure may involve the seller curing or deeding it to Trademark Investments, Inc “subject to” the existing loans, who reinstate the loan and possibly cure at a later date. There is a risk to the homeowner that the lender may accelerate the loan because of the due-on-sale however should the loan be accelerated Trademark Investments, Inc agrees to immediately cure the loan.

2. Repayment Plan: This is a written agreement between the lender and the seller. These plans require higher payments than the regular monthly mortgage amount for a period of time until the loan is brought up-to-date. 

3. Loan Modification: A loan modification involves changing one or more terms of a mortgage. Modifications can be considered to reduce the interest rate of the mortgage, change the mortgage product (from an adjustable rate to a fixed rate, for example), extend the term of the mortgage or capitalize delinquent payments (add delinquent payments to the mortgage balance-only available in extreme hardship situations). Modifications are NOT easily granted and there must be strong, justifiable reasons for the request.

Signed:  ________________________________

4. Forbearance Agreement: The lender will allow you a period of time (3-6 months typically) of either low payments or no payments at all. Unless the loan term is extended (which happens rarely), the later payments generally will have to be higher than the original monthly mortgage payments until the loan is up-to-date.  You must also quality for a Forbearance Agreement through your lender.

5. Special Forbearance (FHA Loans only): Allows eligible borrowers to postpone monthly mortgage payments for a minimum of four months. While there is no limit on the maximum number of months, at no time may the agreement allow the delinquency to exceed the equivalent of 12 monthly PITI installments.

 

6. Deed-in-Lieu: A Deed in Lieu is an option in which a borrower voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. A DIL may not be accepted from borrowers who can financially make their payments. If a borrower qualifies for a DIL program they may be eligible for cash back from the lender as in the “Cash for Keys” program.

7. Cash Sale: The borrower sells the property, pays off his loan, and, depending on the equity, may net some cash out of the deal. The challenge, of course, is being able to sell it quickly enough, which most often requires a substantial drop in the price.  There is also the cost of realtor fees for listing and selling.  Even if you have a contract to sell if the prospective buyer defaults or cannot close in time the foreclosure is still active and you can loose your home.

8. Short Sale: The borrower makes an agreement with the investor to sell it for less than is actually owed, subject to approval of the lien holders. This generally results in no cash to the homeowner, but will be better for his credit than a completed foreclosure.

9. Refinance: The borrower may be able to refinance and get a new loan, but generally this is difficult because the borrower has little equity and poor credit. The new loan likely will have higher payments than the old loan.

10. Do Nothing: The worst choice for the seller, whose credit will be ruined.  When the home is sold at auction and is closed on by the new owner they will be evicted and walked out of their home by the authorities if they do not leave voluntarily.

 

The services provided by Trademark Investments, Inc for this transaction are as follows:

 

            We will reinstate your current loan and stop the foreclosure process.  We will order the reinstatement from the lender/trustee with the Authorization and Release form that you signed.  Once the reinstatement amount is received we will send certified funds in that amount to stop the foreclosure sale.  By reinstating this loan we are purchasing the property subject to your current loan.  The property will then be deeded to one of our holding companies LLC. 

Signed:  ______________________________________

 

________ OPTION 1:  Trademark Investments, Inc will rent the property back to the homeowner for an initial period of one year as shown on the lease.  Tenant will be responsible for all taxes and insurance on the property if they are not included in the monthly payments.  If lessee has made timely payments (by the due date shown on the rental contract) during the initial 12 month term of the lease this lease may be renewed by lessee for an additional 12 months.  Tenant will have this option every year thereafter ONLY if monthly payments are received on time.  Rent payments are due on the first, and considered late on the 5th.

 

Tenant may also be given an option to purchase the home within the first year.  All requirements for the option are listed on the option to purchase.  Should tenant chose to or be unable to fulfill the option for any reason then Trademark Investments, Inc  will maintain ownership of the property with no further purchase options given.  Tenant will still have the option to re rent the premises each year as long as rent payments have been made on time each month.

 

________ OPTION 2:    Trademark Investments, Inc will help the homeowner locate a new premises as well as help with moving costs.  We will then begin the rehab process of the home and assume all expenses associated with the rehabilitation.  Trademark Investments, Inc will then list the home for sale at a reasonable price.  The advantage to the seller is that we are stopping the foreclosure from destroying their credit.  We are also helping them move into a new home on their schedule and not the schedule set by the foreclosure sale.

 

 

Additional Agreements between homeowner and Trademark Investments, Inc 

 

                                                                                                                                               

 

                                                                                                                                               

 

                                                                                                                                               

 

 

Signed:                                                           

 

Signed:                                                           

 

Signed: