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How long
does an American Freedom Fund Equity
Share last?
Typically,
the agreement is
for 3 - 5 years,
with the
possibility of
an extension, if
needed. This
allows time for
the property to
appreciate
enough for a
refinance or
investor buy
out. The
agreement can be
tailored to fit
individual
needs.
Who
decides what the
property is
worth at buy-out
time?
The value of
the home is
established by
independent
appraisal.
Does the
buyer make
monthly payments
to the program,
for the Equity
Share Down
Payment
Assistance?
There are no
monthly payments
made on The
American Freedom
Fund
assistance. The
American Freedom
Fund is
repaid, only at
the time of
buy-out, which
is usually 3 to
5 years.
What
happens if the
property doesn't
go up in
value or even
goes down?
Nobody knows
what values are
going to do in
any given period
of time. If the
values go up, as
expected, the
owner can
buy out The
American Freedom
Fund right
on schedule. If
values grow more
slowly or even
go down, as they
did in the late
1980's and early
1990's, the most
common solution
is to simply
extend the
agreement until
the market
improves. There
will be a
minimum return
to the investor,
built into the
agreement.
What
documentation
goes along with
an Equity Share?
Every Equity
Share purchase
includes an
Equity Share
agreement that
spells out the
rights and
responsibilities
of both parties,
and defines the
terms of
distribution, at
the time of the
buy-out. There
will be a Grant
Deed, a Deed of
Trust, a
Memorandum, and
supporting
documents. All
AFF Transactions
will also have a
sub-escrow.
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