You MUST use the Loan Document forms developed by TDHCA and provided in the HBA Manual
Down Payment Assistance Note (Form 1.05) Subordinate Deed of Trust (Form 1.06) Transfer of Lien (Form 1.07)
1
DOWN PAYMENT ASSISTANCE NOTE SECOND LIEN (”NOTE”)
(Form 1.05)
2
Page 1 of 6:
HOME Contract # 1234567 Activity # 12345
Date:
October 14, 2004
Property (which includes the real property and improvements thereon):
Address: 123 XYZ Avenue City: Anywhere County: Anyplace, Texas
3
1.
BORROWER’S PROMISE TO PAY
The Borrower is Name of Homebuyer. In return for a loan that I have received, I promise to pay U. S. $ Amount of HBA Assistance (this amount is called “principal”) to the order of the Lender. The Lender is Name of Contract Administrator. Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the “Note Holder.”
4
Page 2 of 6:
2. INTEREST No interest will accrue on this loan at any time.
0%
5
3. TIME AND PLACE OF PAYMENTS Provided that the Borrower complies with the other terms of this Note, the amounts due and payable under this Note shall be deferred and repayable as follows:
6
From Signature Date to 1st anniversary From 1st anniversary to 2nd anniversary From 2nd anniversary to 3rd anniversary From 3rd anniversary to 4th anniversary From 4th anniversary to 5th anniversary From 5th anniversary to 6th anniversary From 6th anniversary to 7th anniversary
100% 90% 80% 70% 60% 50% 40%
From 7th anniversary to 8th anniversary
From 8th anniversary to 0th anniversary From 9th anniversary to 10th anniversary After 10th anniversary
30%
20% 10% 0%
7
Page 3 of 6:
The events which will cause the balance of the Note to be declared due and payable are as follows: (a) the note to Name of Mortgage Lender dated October 14, 2004 in the amount of $ Amount of Mortgage, hereinafter the First Lien Note (“FLN”), is paid in full according to its terms; or
8
(b) the FLN is refinanced in whole or in part or is assumed by a new borrower without the consent of TDHCA; or (c) the unpaid balance of the FLN becomes due and payable in full for any reason; or
(d) all or any part of the Property, or any interest in it, is leased, transferred, or foreclosed; or
9
(e) all or part of the Property is sold; or (f) the Borrower ceases to occupy the Property as his or her principal residence.
10
I will make my payment(s) at Address of Administrator or at a different place if required by the Note Holder.
11
Page 6 of 6:
Witness the Hand and Seal(s) of the Undersigned:
____________________ Borrower
____________________ Borrower
__________ Date
__________ Date
12
Endorsement
DATE: October 14, 2004 Pay to the Order of Texas Department of Housing and Community Affairs, an Agency of the State of Texas: Name of Contract Administrator Name of Contract Administrator BY: Authorized Person’s Signature
Authorized Signature
Title
Title
13
Down Payment Assistance Note
NOT recorded
ORIGINAL must be submitted to the Department with Draw Request support documents.
14
SUBORDINATE DEED of TRUST
(Form 1.06)
15
Page 1 of 11:
HOME Contract # 1234567 Activity # 12345
This SUBORDINATE DEED of TRUST ( “Security Instrument” ) is made on Settlement Date (“Date”).
The grantor is Name of Borrower (“Borrower”).
16
The trustee is Name of Contract Administrator (“Trustee”), whose address is Address of Contract Administrator.
The beneficiary is Name of Mortgage Lender, (“Lender”), which is organized and existing under the laws of State of Lender , and whose address is Address of Lender.
17
Borrower owes Lender the principal sum of Spelled out Amount of HBA Assistance Dollars (U.S. $ Numerical Amount). This debt is evidenced by Borrower’s note dated the same date as this Security Instrument (“Note”), with the full debt due and payable on 10 years from Date of Settlement (“Final Maturity Date”).
18
The Note provides for certain potential deferrals, forgiveness or other payment terms. The Note also provides that the full debt, if not paid or forgiven earlier, shall be due and payable on the sale of the property, refinance of the senior purchase money note dated Settlement Date in the original principal amount of Mortgage Amount issued by Borrower and made payable to Name of Mortgage Lender (“Senior Lien Holder”), hereinafter the First Lien Note (“FLN”),
19
This clause applies only in 3rd Lien situations:
[refinance of a prior note dated _____________ in the original principal amount of ____________ issued by Borrower and made payable to ____________________ (“Prior Note Holder”), hereinafter the Second Lien Note (“SLN”)], or acceleration of either the FLN, [SLN] or this Note upon Borrower’s default, whichever is first to occur.
20
Page 2 of 11:
For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in Name of County County, Texas insert legal description: which has the address of Physical Street Address (Street), Name of City (City), Zip Code (Zip Code), Texas,(“Property Address”).
21
Page 3 of 11:
Payment of these amounts in escrow (if required under the terms of the approved purchase money Deed of Trust securing the FLN from Borrower herein to Name of Contract Administrator, Trustee, of even date with FLN, to be filed in the Official Public/Deed/Real Property Records of Name of County Where Property is Located County, Texas (“First Lien Deed of Trust”) instead of directly to the person owed payment, will not be a default under this Security Instrument, provided that the escrow agent in turn pays them on time to the person owed payment and the escrow agent or the Borrower promptly thereafter furnishes to Lender receipts evidencing the payments.
22
This phrase applies only to 2nd Lien situations:
Except as to the First Lien Deed of Trust [and the prior deed of trust securing the SLN from Borrower herein to Name of Contract Administrator, Trustee, of even date with SLN, to be filed in the Official Public/Deed/Real Property Records of Name of County Where Property is Located County, Texas (“Second Lien Deed of Trust”),
23
Page 11 of 11:
Borrower’s Signature Borrower SSN Social Security Number
Borrower’s Signature Borrower SSN______________ Social Security Number
24
STATE OF TEXAS, County of County Where Deed of Trust is Being Signed
BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day personally appeared Names of Borrowers, known to me to be the person(s) whose names(s) is/are subscribed to the foregoing instrument and acknowledged to me that he/she/they (s)(t)he(y) executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this Date day of ___Month_____, 20Year.
Signature of Notary Notary Public
NOTARY’S SEAL or STAMP
25
Instructions to County Clerk’s Office:
Forward RECORDED Deed of Trust to:
Texas Department of Housing and Community Affairs Single Family Finance Production Division Loan Closing, Suite 700 P.O. Box 13941 Austin, TX 78711
26
Subordinate Deed of Trust (DOT)
CERTIFIED COPY must be submitted to the Department with Draw Request.
Original DOT Must be RECORDED.
Recorded “trailing document” must be submitted to the Department within 90 days following Settlement Date or all future Draw Requests will be suspended.
27
TRANSFER of LIEN (Form 1.07)
28
Page 1 of 3:
HOME Contract # 1234567 Activity #12345 DATE: Settlement Date HOLDER’S MAILING ADDRESS (INCLUDING COUNTY): Name of Contract Administrator Address City
29
NOTE: Date: Settlement Date Original Amount: $ Amount of HBA Loan Maker: Name of Homebuyer Maker Address: Property Address Unpaid Principal and Interest: $ HBA Loan Payee: Contract Administrator
30
Page 2 of 3:
Note and Lien are described in a Deed of Trust of even date executed by Maker and payable to Payee and recorded in the Real Property Records of County Where Recorded County, Texas. Property (including any improvements) subject to Lien (insert legal description): Prior Lien(s): Deed of Trust (describe first lien Deed of Trust) dated Date of DOT executed by Maker, payable to Payee as described in the note, securing a note in the amount of $ HBA Loan Amount and recorded in Records of County Where Recorded County, Texas.
31
Name of Contract Administrator_________ Contract Administrator BY:
Signature of Authorized Representative____ Authorized Signature Title of Authorized Representative_________ Title
32
STATE of TEXAS County of County Where Transfer of Lien is Signed
This instrument was acknowledged before me on Month and Date, 20Year. by Name of Authorized Representative, of Name of Contract Administrator, a Title of Representative, on behalf of said organization. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this Date day of Month, 20Year. Signature of Notary Notary Public Notary’s Seal or Stamp
33
Instructions to County Clerk’s Office:
Forward RECORDED Deed of Trust to:
Texas Department of Housing and Community Affairs Single Family Finance Production Division Loan Closing, Suite 700 P.O. Box 13941 Austin, TX 78711
34
Transfer of Lien (TOL)
MUST be recorded
ORIGINAL must be submitted to the Department with Draw Request support documents.
35