Chemfreemom
Junior Member
I bought a house in 2009 through the WV Housing Development Fund's HOME loan. It's a no-interest loan for low-income people in certain situations and since I'm a single mother with a low income, I was eligible. I have an opportunity now to go live in another country and want to sell my home, but I read something in the note about a recapture clause and I don't quite understand it, but I'm afraid it's saying that if I sell at a profit, I have to give the profit to them. I won't be able to move if I can't keep most of the $20 to $30,000 profit. This is what it says exactly:
"As a recipient of a Loan from the Lender the Borrower is subject to recapture restrictions under 24 CFR 92.254 of the HOME Program regulations and this Note is subject to repayment to the Lender if the Borrowers' principal residence does not meet the affordability requirements during the Affordability Period (which end in 2049). The Borrower shall own and occupy the real property that serves as security for this Loan as the Borrower's principal residence. The Borrower shall notify the Lend if the Borrower no longer occupies the Mortgage Property as the Borrower's principal residence. IF THE BORROWER SELLS OR TRANSFERS, FOR ANY REASON, THE MORTGAGED PROPERTY DURING THE AFFORDABILITY PERIOD, THE BORROWER SHALL PAY THE LENDER THE OUTSTANDING BALANCE OF THE LOAN. IN ORDER TO RECAPTURE HOME FUNDS AND MAKE THEM AVAILABLE FOR FUTURE HOME QUALIFIED BORROWERS, PROCEEDS FROM THE SALE OF A HOME FINANCED PROPERTY WILL BE APPLIED FIRST TO THE OUTSTANDING PRINCIPAL BALANCE, AND ANY REMAINING BALANCE, IF ANY, TO SUBORDINATE LENDERS OR TO THE HOME BORROWERS. IN THE EVENT THE NET PROCEEDS PROCEEDS OF THE SALE ARE NOT SUFFICIENT TO COVER THE UNPAID BALANCE OF THE LOAN AND THE HOME SUBSIDY, THEN THE BORROWER MAY OR MAY NOT BE RESPONSIBLE FOR THE REPAYMENT OF THE HOME SUBSIDY. THE AMOUNT OF THE LOAN SUBJECT TO RECAPTURE SHALL BE DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF 24 CFR 92.954 AND THE GUIDELINES OUTLINED IN THE APPROPRIATE PROCEDURAL GUIDE OF THE LENDER."
I don't know if this is related to what I'm asking, but here's something else:
"This note is referred to in and is secured by that certain deed of trust of even date herewith made by Borrower to Phillip Magro, Trustees, covering certain real property situate in Mon. County, WV."
(Phillip Magro, is the lawyer who did the closing, and the Housing Development Fund paid for it)
It also says"
"Borrower, and all endorser and guarantors of this NOte, if any, hereby jointly and severally expressly waive presentment for and demand of payment and notice of the nonpayment of any installment of principal falling due under this Note, and also waive protest of same upon default of the payment of any such installment, and agree that extension or extensions of the time of payment of this Note, or any installment or part hereof, may be made before, at or after maturity by agreement with any one of more of the parties hereto without notice to and without releasing the liability of any other party."
Also this:
"If all or any part of the Property or any Interest in the Property is sold or transferred without the Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law.
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower."
I know this is a lot, but I'm freaking out right now. I've been planning this move under the assumption that I'd make at least $20,000 on the sale of my house and if I don't get that money, I'm in a very bad position right now.
Thank you in advance for your help.
"As a recipient of a Loan from the Lender the Borrower is subject to recapture restrictions under 24 CFR 92.254 of the HOME Program regulations and this Note is subject to repayment to the Lender if the Borrowers' principal residence does not meet the affordability requirements during the Affordability Period (which end in 2049). The Borrower shall own and occupy the real property that serves as security for this Loan as the Borrower's principal residence. The Borrower shall notify the Lend if the Borrower no longer occupies the Mortgage Property as the Borrower's principal residence. IF THE BORROWER SELLS OR TRANSFERS, FOR ANY REASON, THE MORTGAGED PROPERTY DURING THE AFFORDABILITY PERIOD, THE BORROWER SHALL PAY THE LENDER THE OUTSTANDING BALANCE OF THE LOAN. IN ORDER TO RECAPTURE HOME FUNDS AND MAKE THEM AVAILABLE FOR FUTURE HOME QUALIFIED BORROWERS, PROCEEDS FROM THE SALE OF A HOME FINANCED PROPERTY WILL BE APPLIED FIRST TO THE OUTSTANDING PRINCIPAL BALANCE, AND ANY REMAINING BALANCE, IF ANY, TO SUBORDINATE LENDERS OR TO THE HOME BORROWERS. IN THE EVENT THE NET PROCEEDS PROCEEDS OF THE SALE ARE NOT SUFFICIENT TO COVER THE UNPAID BALANCE OF THE LOAN AND THE HOME SUBSIDY, THEN THE BORROWER MAY OR MAY NOT BE RESPONSIBLE FOR THE REPAYMENT OF THE HOME SUBSIDY. THE AMOUNT OF THE LOAN SUBJECT TO RECAPTURE SHALL BE DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF 24 CFR 92.954 AND THE GUIDELINES OUTLINED IN THE APPROPRIATE PROCEDURAL GUIDE OF THE LENDER."
I don't know if this is related to what I'm asking, but here's something else:
"This note is referred to in and is secured by that certain deed of trust of even date herewith made by Borrower to Phillip Magro, Trustees, covering certain real property situate in Mon. County, WV."
(Phillip Magro, is the lawyer who did the closing, and the Housing Development Fund paid for it)
It also says"
"Borrower, and all endorser and guarantors of this NOte, if any, hereby jointly and severally expressly waive presentment for and demand of payment and notice of the nonpayment of any installment of principal falling due under this Note, and also waive protest of same upon default of the payment of any such installment, and agree that extension or extensions of the time of payment of this Note, or any installment or part hereof, may be made before, at or after maturity by agreement with any one of more of the parties hereto without notice to and without releasing the liability of any other party."
Also this:
"If all or any part of the Property or any Interest in the Property is sold or transferred without the Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law.
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower."
I know this is a lot, but I'm freaking out right now. I've been planning this move under the assumption that I'd make at least $20,000 on the sale of my house and if I don't get that money, I'm in a very bad position right now.
Thank you in advance for your help.
