What happens in the event of default by the consumer and foreclosure of the loan?
A. The property is acquired by the mortgagee (note holder) by foreclosure, and sold in the open market. The loan purchase and sales agreement with Landmark provides that the company will be responsible for sale of the property once it is foreclosed. It also provides that the company reimburse the note holder for any deficiency between the principal balance outstanding, including accrued interest, at the time of foreclosure, and the net proceeds received from the property sale. If the proceeds exceed the amount due the note holder then the remaining difference is the property of the company, and/or mortgagor.
