Mortgage Commitment Agreement

MORTGAGE COMMITMENT AGREEMENT

Parties and Date

Effective Date: . Lender hereby issues this mortgage commitment to Borrower subject to the terms and conditions set forth below.

Property Identification

Loan Terms

Rate lock shall be effective until . Commitment is conditioned upon timely satisfaction of the conditions set forth below.

Commitment Conditions and Requirements

This commitment is a binding obligation of Lender to make the loan described above provided Borrower timely satisfies the following conditions precedent prior to the Commitment Expiration Date: delivery of executed promissory note and mortgage, satisfactory title search and issuance of lender's title insurance commitment, receipt of a satisfactory appraisal of the Property, verification of income and employment, receipt of hazard and flood insurance binder naming the lender as loss payee, and payment of all fees and costs required at closing. Lender may impose additional reasonable conditions in writing.

Disclosures and Environmental Matters

Lead-Based Paint Disclosure: Yes No

Mold / Water Intrusion Known: Yes No

Previous Material Damage or Repairs (structural, fire, flood): Yes No

Representations, Warranties and Covenants

Borrower represents and warrants that all statements and information provided to Lender for purposes of underwriting are true and correct as of the Effective Date. Borrower covenants to maintain the Property, to carry hazard and liability insurance with limits satisfactory to Lender, to permit Lender or its agents reasonable access for inspection, and to sign all documents reasonably required to consummate the loan.

Default, Termination and Remedies

If Borrower fails to satisfy any condition precedent or commits an event of default under this Agreement, Lender may terminate this commitment on notice and exercise any rights and remedies provided by law or equity. Upon default, interest on the unpaid principal balance shall accrue at the default rate specified in the promissory note and Lender may seek foreclosure, specific performance or damages as permitted by applicable law.

Closing Procedures and Costs

Closing shall occur at a mutually agreeable title/escrow company within the Commitment Expiration Date. Borrower shall pay closing costs, prepaid items and any required escrows unless otherwise specified in writing. Lender's obligation to fund is conditioned upon delivery of all closing documents acceptable to Lender.

Governing Law and Miscellaneous

This Agreement shall be governed by and construed in accordance with the laws of the state in which the Property is located, without regard to conflicts of law principles. Time is of the essence with respect to Borrower's obligations under this Agreement. This Agreement, together with related loan documents, constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, representations and understandings, whether oral or written.

All notices under this Agreement must be in writing and delivered to the addresses listed above or to such other address as either party may designate by written notice to the other.

Conditions Upon Funding

Lender's funding is contingent upon satisfaction of the foregoing conditions, including but not limited to receipt of final HUD-1/closing statement showing no material changes adverse to Lender, and the absence of any material adverse change in Borrower's financial condition prior to closing.

Acknowledgments and Execution

The parties acknowledge that they have read and understand this Mortgage Commitment Agreement, that they have had the opportunity to seek independent legal counsel, and that they intend to be bound by its terms. This commitment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

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