How can I be sure that the home buyer/owner is making the payments on time?
As part of the quarterly portfolio reports, the investor will be informed as to the status of the mortgage. Further, the investor will be entitled to receive information directly from the mortgage lender. • What if the home buyer/owner is not taking good care of the property? Unlike a renter, the owner has a significant financial stake in the property and, therefore, is motivated to take care of the property and even improve its value. Nevertheless, the PRIMARQ agreement assigns maintenance obligations and necessary capital improvements to the owner. If for some reasons your owner does not take good care of the property, the PRIMARQ agreement considers this a default. • What happens in a default? The agreement includes certain rights and privileges to the investor in the case of a default. Remedies include a reallocation of the equity participation, the opportunity to purchase the home owner’s equity at a discounted price, and the ability to prompt the sale of the home.
