RC System

Agreement

Wrap Note Payment

RE: PROPERTY ADDRESS

Due on Sale Clause: In the unlikely event the lender on the underlying
lien ever exercised the due on sale clause and the Buyer is unable to
refinance the home; then any of the solutions noted below may be
employed:
First, if the Seller is in a position to pay-off the underlying lien to
eliminate the risk of the due on sale clause the Seller may do so and thereby
continue on with the Note for the remaining term.
Otherwise the Buyer may choose any of the following options:
1) The Buyer agrees to deed the home back to the Seller and the Seller
agrees to refinance the home and pay off the lender. The exact cost of
the refinance would be borne by the Buyer and be loaded into the
mortgage if possible. The Seller agrees that they would rewrap the
note and deed the property back to the Buyer as before and continue
the process until the Buyer refinances or sells the home; or
2) The Buyer agrees to deed the home back to the Seller and the Seller
agrees to then deed the home into an intervivos trust and then give
the buyer a 99% beneficial interest in the trust - effectively delivering
the identical benefits of home ownership including homestead,
depreciation, etc. leaving the lender unable to exercise the due on sale
clause due to the Garn-St. Germain Act of 1982 which allows an owner
to deed title of a property into an intervivos trust as long as they retain
a beneficial interest (12 U.S. Code 1701j3 - Preemption of due-on-sale
prohibitions); or
3) The Buyer agrees to deed the home to the Seller and the Seller agrees
to execute a sales agreement to the Buyer keeping the Buyers position
the same as before while the Buyer attempts to complete a purchase
at the same remaining balance due to the Seller. If the Buyer cannot
successfully close, the Seller will execute a lease purchase agreement
and keep the Buyers terms the same until the challenge is resolved.
ACCEPTED AND AGREED THIS _______ day of 2016.

___________________________
Buyer

_____________________________
Buyer

__________________________

RC System Copyright 2016 RCS Training | All rights reserved. Reproduction in any form without the express consent of RCS is prohibited.

Seller/Note Holder

RC System
Agreement

Wrap Note Payment

RC System Copyright 2016 RCS Training | All rights reserved. Reproduction in any form without the express consent of RCS is prohibited.