STANDARD FORM PURCHASE CONTRACT (B-Schedule Partial) THIS CONTRACT entered into this ______ day of ______________, ______, by and between _________________________________________________, hereinafter referred to as Seller, and _________________________________________________, hereinafter referred to as Purchaser. 1. Seller represents and warrants to Purchaser and Purchaser's assigns that he is the legal owner (or current assignee) of the following described note and (mortgage) (deed of trust) (contract for deed), hereinafter referred to as Note and Security Instrument, executed by _______________________________________, hereinafter referred to as Payor, in favor of _______________________________________, original Principal Balance $_______________ (______________________________________________________________) Dollars, bearing interest at the rate of ____ percent per annum and paid (interest-only) (amortized in equal monthly principal and interest payments) (other: ) (hereinafter referred to as "Payments") of $_______ (____________________________________) Dollars, dated ________________, _____ with a final payment in the amount of $_____________ (_____________________________________________) Dollars (other: ) and recorded in Deed Book ________, Pages ____________, _____________ County records, State of ______________. Legal description of real property securing the Note and Security Instrument: 2. Seller further represents and warrants to Purchaser that Seller is named as additional insured and loss payee on a title insurance policy and a hazard insurance policy on the real property securing the above styled Note and Security Instrument in an amount sufficient to cover the combined outstanding principal balance of the first and, if applicable, second mortgages (or applicable security instrument). 3. DEFINITIONS: As used herein, these terms have the following meanings: A. NET SUM: The principal sum of $ __________ (______________________________) received and retained by Purchaser. B. AMOUNT PURCHASED: The Net Sum together with interest at the rate set forth in the Note and Security Instrument together with penalties and late charges provided therein incurred by the Payor and any Additional Expenses incurred by Purchaser. C. ADDITIONAL EXPENSES: Any and all of the reasonable expenses incurred by Purchaser in connection with this Contract subsequent to the date the assignment of the Note and Security Instrument is recorded, including without limitation, advances on superior liens and encumbrances, costs, disbursements, title and appraisal fees, attorney fees, taxes, insurance premiums, repairs, maintenance expenses, late charges and real estate commissions together with interest thereon at the rate specified in the Note and Security Instrument from the date said expense was incurred. D. DEFAULT: Failure of the Payor to perform pursuant to the terms and conditions of the Note and Security Instrument. 4. In consideration of the agreements contained herein, Seller agrees to sell, transfer, convey and assign to Purchaser and Purchaser agrees to purchase upon the terms and conditions hereinafter set out, the Amount Purchased and all of Seller's rights, title, powers, interest in and to both the Note and Security Instrument, together with all of Seller's rights, claims, and causes of action which Seller has or may have against the Payor of the Note and Security Instrument, together with all of Seller's rights, title, powers, interest in and to the real property which is described in the Note and Security Instrument, together with the Seller's rights, title, powers, interest in and to any insurance policies, both title and property damage, for the duration of Purchaser's rights to the Note and Security Instrument to be conveyed as provided for herein as consideration for the Net Sum of $___________ (________________________________) Dollars. Net Sum to be paid by Purchaser at closing subject to proportionate adjustment if the balances, terms, payments or conditions stated in Paragraph 1 are incorrect or inaccurate. 5. Purchaser shall hold the original Note and Security Instrument until termination of this transaction. Only after Purchaser has received the Amount Purchased shall Seller be entitled to receive the remaining proceeds, if any, due under the Note and Security Instrument. This transaction shall terminate at such time as Purchaser has received the Amount Purchased. Upon such termination, Purchaser shall convey to Seller all of Seller's then remaining rights, title and interest in the Note and Security Instrument and shall execute such documents as may be necessary to effect such a conveyance and terminate Purchaser's interest as a matter of record. 6. Seller hereby conveys all of his rights pursuant to the Note and Security Instrument. In the event of a default by Payor, Purchaser shall notify Seller of such default via certified mail, return receipt requested, and Seller will have fifteen (15) days in which to purchase Purchasers' interest in the Note and Security Instrument by paying to Purchaser, in cash, the remaining balance of the Amount Purchased then due Purchaser plus Additional Expenses, if any. If Seller fails to exercise this option within said fifteen days, Purchaser shall have the right to enforce all rights under the Note and Security Instrument including but not limited to the right to accept a deed in lieu of foreclosure, initiate legal proceedings against the Payor to collect the amounts owing or initiate foreclosure action. (a) In the event that Purchaser completes a foreclosure or otherwise obtains title to the property described in the Note and Security Instrument, Purchaser agrees to give Seller written notice that the property has been repossessed. Seller shall have the option to purchase the property from Purchaser within thirty (30) days of Purchaser's notice to Seller of the repossession of the property by paying to Purchaser the remaining balance of the Amount Purchased then due Purchaser plus ten percent of said amount plus Additional Expenses. (b) If Seller fails to exercise Seller's option to purchase the property within thirty (30) days of the notice that the property has been repossessed, any and all of Seller's rights to any proceeds and/or settlement whatsoever relating to the Note and Security Instrument, this Contract, the repossession of the property, any and all rights under the Note and Security Instrument and any newer Note and Security Instrument which might subsequently be held by Purchaser in conjunction with a resale of the real property shall be terminated. (c) Seller acknowledges that Seller has no right or obligation to assume the payment of the Note and Security Instrument transferred pursuant to this Contract. Seller agrees that Purchaser's acceptance of any installments from the Seller will be at Purchaser's sole option and for the sole purpose of accomodating Seller's need for time to arrange financing of Seller's repurchase of Purchaser's interest in the Note and Security Instrument. Purchaser reserves the right to refuse to accept any installment tendered by Seller without notice to Seller whether or not Purchaser has previously accepted one or more installments from Seller. 7. In the event of a total prepayment of the Note and Security Instrument, Purchaser shall be entitled to receive the unpaid balance of the Amount Purchased. The remainder, if any, shall be paid to the Seller. Purchaser shall accept any partial prepayments and shall apply them to the Amount Purchased. Any payments received by Purchaser in excess of the unpaid balance of the Amount Purchased owed to Purchaser will be promptly forwarded to Seller. 8. Should the Payor not be in default, the Seller may purchase Purchaser's interest in the Note and Security Instrument by paying to Purchaser, in cash, the unpaid balance of the Amount Purchased due Purchaser at time of said repurchase. 9. Seller represents and warrants to Purchaser that the Payor has been late ____ times and the payments are now _______________________. 10. This Contract is contingent upon the following: A) Purchaser's approval of all documents evidencing the Payor's obligation to seller; B) A title report prepared by Purchaser's attorney shall be acceptable to Purchaser as determined by Purchaser in his sole opinion; C) The creditworthiness of the Payors shall be acceptable to Purchaser as determined by Purchaser in his sole opinion; D) The value of the real estate securing the Note and Security Instrument at time of closing shall be acceptable to Purchaser as determined by Purchaser in his sole opinion. 11. Time is of the essence of this Contract. Purchaser shall have thirty (30) days from the date of this Contract to examine all documents, property and information deemed necessary by Purchaser to satisfy all contingencies and to close the transaction contemplated by this Contract, and to cancel this Contract without penalty or liability if any of the same is found unsatisfactory to Purchaser as determined by Purchaser in his sole opinion. Seller shall cooperate with Purchaser in obtaining any information necessary for such timely examinations and verifications. Purchaser shall have the right to extend this date for a maximum of 30 days if in his sole opinion it is necessary in order to complete due diligence. The closing shall occur at a mutually agreed-upon time and place. In the event the transaction contemplated by this Contract is not completed within the above period including extension this Contract shall become null and void and there shall be no liability between the parties hereof, except for the provisions of Paragraphs 13 and 15 herein. Purchaser may convey his rights and interest in this Contract to any other party without the consent of Seller. 12. Closing costs, including attorney's fees, mortgagee's title insurance, appraisal and credit check shall be paid by (Seller) (Purchaser) (Other: ________________________________). 13. Seller agrees to execute an Assignment of the Note and Security Instrument and to endorse the same to Purchaser. Seller shall convey: 1) The Assignment and original endorsed Note and Security Instrument bearing original signatures; 2) A recordable Request for Notice; 3) A Notice of Substitution of Additional Insured and Loss Payee addressed to the title company and hazard insurance company substituting the Purchaser for the Seller on said policies; 4) A signed Notice to Payor instructing Payor to make the monthly Note payments directly to Purchaser at an address to be provided by Purchaser; to the Escrow Agent, ________________________, at ___________________________________ ________________________________, phone ______________ on or before _________, ____. Escrow Agent shall hold the above in escrow until closing at which time he shall deliver same to Purchaser. Failure of Seller to deliver the assignment and endorsed Note and Security Instrument and insurance notices by the deadline above shall constitute default of this Contract and the funds deposited with Escrow Agent as per Paragraph 14 herein shall be forfeited and become the property of Purchaser. Escrow Agent is instructed to release these funds immediately upon receipt of Purchaser's Affidavit of Default. 14. Seller shall deposit with Escrow Agent the sum of $___________ (_________________ ___________________________) Dollars, on or before ______________, ____. Escrow Agent is hereby instructed to release these funds to Seller upon closing of the transaction contemplated by this Contract and Purchaser's receipt of the properly executed Note and Security Instrument and Notices as per Paragraph 13 including the Assignment and Note bearing original signatures and evidence of recordation in the appropriate County records showing Purchaser's interest in the Note and Security Instrument. 15. If Purchaser cancels this Contract under the terms of Paragraph 11 above he shall immediately authorize the Escrow Agent to released the funds deposited by Seller back to Seller. (a) Should Purchaser be ready, willing and able to close the transaction contemplated by this Contract and Seller is unable or unwilling to fulfill and in fact does not fulfill the terms of this Contract, the funds deposited with Escrow Agent shall be forfeited and become the property of Purchaser. Escrow Agent is instructed to release these funds immediately upon receipt of Purchaser's Affidavit of Default. In addition, in this event Seller shall immediately pay to Purchaser fifteen (15) percent of the original principal balance of said Note and Security Instrument, which sum shall serve as full liquidated damages to Purchaser. 16. At time of closing the principal balance due under the Note and Security Instrument shall be no less than $________________ (________________________________________________) Dollars or there shall be no less than _____ payments of $________ (______________________ _______________________) Dollars each remaining due and owing on the Note and Security Instrument or an appropriate adjustment shall be made. 17. Any payments received by Seller during the term of this Contract or of any extension shall be credited to the cash required of Purchaser at closing and to the purchase price. There shall be no proration of interest. 18. Upon closing Purchaser reserves the right to hold back from the proceeds due to Seller at closing the amount of the next monthly installment payment due on the Note and Security Instrument. After Purchaser receives and credits said next installment the held-back payment will be released to Seller without interest. In the event Purchaser does not receive the next installment payment, Seller shall not, in any event, receive the amount of the installment withheld. 19. Seller warrants that his interest as mortgagee or current assignee in the real property which is the subject matter of the above described Note and Security Instrument is marketable and insurable. If a title examination reveals that it is not marketable and insurable, then Seller agrees to exercise diligent efforts to render his interest marketable and insurable. If Seller fails to so do to the satisfaction of Purchaser within 90 days of written notification from Purchaser or Purchaser's attorney, the funds deposited with Escrow Agent shall be forfeited and become the property of Purchaser. Escrow Agent is instructed to release these funds immediately upon receipt of Purchaser's Affidavit of Default. Purchaser shall not be responsible for any costs necessary to perfect title. 20. The representations and warranties and undertaking set forth herein shall be continuing and any waiver of such shall not constitute a waiver of any subsequent breach. No waiver thereof shall be implied from any forbearances, failure or delay and enforcement thereof. The liability of the undersigned in respect to any waiver or breach herein shall not be affected by the granting of extensions, adjustments or compromises of claims by Purchaser. Seller hereby consents to and waives notice of any and all such extensions, adjustments, compromises or settlements in respect to the Note and Security Instrument. 21. Seller agrees to provide all documents and information which may be reasonably required by Purchaser. In the event of default by Payor on the Note and Security Instrument, Purchaser shall have the exclusive and sole discretion to prosecute the enforcement of the Note and Security Instrument and to otherwise realize on the property securing the same. Seller shall have no right to oppose any action by Purchaser in this event. 22. Seller shall not sell, convey or assign any interest in said Note and Security Instrument or attempt to negotiate for the sale, conveyance or assignment of any interest in the Note and Security Instrument to any other party during the term of this Contract or any extension thereof. 23. The Contract shall be construed in all respects with the laws of the State of __________. It is the intention of the Seller and Purchaser that this Contract be interpreted in conformity with those laws. If, however, any portion of this Contract is deemed unenforceable, the remaining portions shall remain in full force and effect and be fully binding on the respective parties. This Contract may not be assigned by Seller without the prior written permission of Purchaser. Typewritten or handwritten provisions initialed by all parties to this Contract shall control if inserted herein or attached as addenda hereto if in conflict with any provisions of this agreement. 24. Seller hereby grants to Purchaser a right of first refusal to purchase all or any portion of the residual right, title and interest in the Note and Security Instrument Seller may retain should Seller elect to sell all or any portion of the retained portion of the Note and Security Instrument. To implement this right of first refusal, Seller shall submit to Purchaser written notice of the amount of money and terms upon which Seller has received an offer to purchase the remaining portion of any percentage of the reserved portion of the Note and Security Instrument. If Purchaser does not accept such offer to purchase within fifteen (15) days of Purchaser's receipt of Seller's written notice, Seller shall be free to sell the same percentage offered to the Purchaser on the same terms and conditions, provided, however, that Seller may not sell a different portion of the interest reserved nor sell on terms and conditions different than those offered to Purchaser. 25. In the event of any litigation concerning this Contract the prevailing party shall be entitled to reasonable attorney's fees in addition to such other relief provided by the Court. 26. Seller shall indemnify and hold harmless Purchaser and/or Purchaser's assigns from any liability, loss or damage Purchaser and/or Purchaser's assigns may suffer as a result of any claims, demands, costs or judgments which may result from the representations and warranties herein made being untrue. 27. Seller acknowledges that this Contract may be recorded in the appropriate county land records at Purchaser's option and that such recordation will cloud the title of the instruments. 28. Seller acknowledges that he has had adequate time to read and understand this Contract and has done so and that he has been requested by Purchaser to seek the advice and counsel of an attorney of his own choice and at his own expense to review the terms of this Contract. 29. Seller further acknowledges that Purchaser is purchasing an interest as defined in this Contract and specifically acknowledges that this is not a loan or loan-type transaction. Seller shall indemnify and hold harmless Purchaser from any liability, loss, damage or additional expense which Purchaser may suffer as a result of any claim that this is a loan or loan-type transaction. SELLER'S INITIALS: 30. This Contract shall inure to the benefit of, and be binding upon, the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns. 31. All notices which may be required under this Contract shall be mailed via certified United States mail, return receipt requested, to the last address given in writing by one party to the other, and shall be deemed given when deposited in the mail. 32. Other terms and conditions: This Contract represents the entire agreement between the parties on this subject matter and supersedes all prior agreements, written or oral, and may not be amended except in writing signed by the parties hereto. The terms, provisions, representations and warranties contained herein shall not merge in, but shall survive, the closing of the transaction. Addenda attached: YES ____ NO ____. This Contract is entered into the day and year first written above. _________________________________ _________________________________ Seller Purchaser State of ________________ ) ) ss County of ______________ ) I, the undersigned, a Notary Public in and for the County and State aforesaid, do hereby certify that ____________________________________________________ whose name is signed to the foregoing as Seller, appeared before me this ________ day of _____________, ____, and acknowledged that the foregoing is their true act and deed. ________________________ Notary Public My Commission Expires: (Seal) State of ________________ ) ) ss County of ______________ ) I, the undersigned, a Notary Public in and for the County and State aforesaid, do hereby certify that ____________________________________________________ whose name is signed to the foregoing as Purchaser, appeared before me this ________ day of _____________, ____, and acknowledged that the foregoing is their true act and deed. ________________________ Notary Public My Commission Expires: (Seal) Please Print - Fill and Fax to: (219) 886-2237 or Mail to: Mpnnotes P.O. Box 561 Gary, Indiana 46402 USA.