Neighborhood Stabilization Program (NSP)
NSP Homebuyer Assistance Program
BORROWER AWARENESS AGREEMENT
1. Financing Contingency. This Agreement is contingent upon Borrower obtaining, at
his/her expense, the purchase money first mortgage, and meeting the requirements of the
Neighborhood Stabilization Program (NSP) Homebuyer Assistance Program Guidelines (the
One of the requirements described in the Guidelines is an inspection of the property by
Hennepin County to determine whether the property meets minimum standards.
INSPECTIONS CONDUCTED BY HENNEPIN COUNTY ARE FOR THE LIMITED PURPOSE OF
COMPLYING WITH THE REQUIREMENTS OF THE NSP HOMEBUYER ASSISTANCE PROGRAM
AND SHOULD NOT BY RELIED ON BY THE BORROWER FOR ANY OTHER PURPOSE. THE
BORROWER IS ADVISED TO OBTAIN AN INDEPENDENT INSPECTION PRIOR TO
PURCHASING ANY PROPERTY.
2. Promissory Note and Mortgage in Favor of the County of Hennepin. Borrowers
agree to and shall execute, at closing; 1) a Promissory Note in the principal amount of
$ .00, in favor of the County of Hennepin, the form of said Promissory Note is
attached hereto as Exhibit A; 2) a Mortgage in favor of the County of Hennepin, which
Mortgage shall, among other things, secure payment of the principal amount of said
Promissory Note. The loan documents will contain the following conditions:
A. In the event of a sale or transfer of title, Mortgage funds must be repaid. County of
Hennepin may agree to a lesser amount in the event that County of Hennepin
determines there are no net proceeds or where the net proceeds are insufficient to
repay the full amount of HOME assistance.
B. The maturity date of the Mortgage shall be Five (5)or Ten (10) years from the
date of execution by the Borrower, unless the Borrower:
(1) Voluntarily or involuntarily, no longer uses the property as his/her principal
residence or leases, sells, transfers, mortgages or pledges all or any part of
the Borrower's interest in the property without prior written consent of the
County of Hennepin;
(2) Defaults under any terms, covenants or conditions of the Mortgage or
Promissory Note; or
(3) Defaults under any terms of the first mortgage secured by the property,
including by way of illustration and not limitation, the failure to make
payment pursuant to said first mortgage.
In which case, the unpaid principal balance of the Mortgage funds shall immediately be due
3. Repayment: Protection of Property. No repayment shall be required and no interest
shall accrue to the principal amount of Mortgage funds provided by the County of Hennepin
and secured by the loan documents, prior to Five (5) or Ten (10) years from the date of
execution of loan documents by the Borrower, so long as the Subject Property remains a
single family unit occupied by the Borrower, and so long as none of the events
described above in paragraph 2.B occur.
Should the Borrower fail to meet any of the terms and conditions of the Note or Mortgage,
the County of Hennepin, at its option, may declare the loan due and payable.
Borrower further agrees that said Mortgage executed by the Borrower in favor of the County of
Hennepin shall include an agreement, for the protection of the County of Hennepin's interest
as Mortgagee, which agreement shall require the Borrower to notify the County of Hennepin, in
the manner provided below in paragraph 5, immediately whenever the Borrower receives,
directly or indirectly, notice that foreclosure proceedings (either by advertisement, action or
otherwise) have begun, foreclosing any liens against the subject property, including, by way of
illustration and not limitation, the foreclosure of the first mortgage encumbering the property.
All of the rights, duties and obligations contained in this paragraph 3 shall survive and shall not
merge with the delivery of the deed conveying title to the property to Borrower.
Upon commencement of the sixth (6th) or eleventh (11th) year after said date of the
Promissory Note Borrower, at that time and any time thereafter, shall have no obligation to
repay the funds.
4. Fees: The Mortgage is exempt from mortgage registration tax (MRT). However, there will
be a fee for recording the Mortgage and the Request for Notice of Foreclosure. Also, the
County of Hennepin requires the Borrower to purchase an Owners Title Insurance Policy.
There will be a fee for this policy. The Borrower is responsible for the costs of these fees
and any others associated with this program.
5. Notice. Notice to be given pursuant to this agreement is satisfied if hand delivered or
mailed to the parties at the address indicated below and shall be effective upon delivery or
upon mailing if properly addressed with postage prepaid and deposited in the United States
County of Hennepin
NSP Homebuyer Assistance Program
Property Address: Address:
417 North Fifth Street, Suite 320
Minneapolis, MN 55401
I/We have read the foregoing Borrower Awareness Agreement and understand the conditions of
the NSP Homebuyer Assistance Program.