Forfeiture of Deposit

Investor Purchasers:

Uninsured Sales: 100% of the deposit will be forfeited to HUD for failure to close regardless of the

reason.

Insured Sales: 50% of the deposit will be forfeited to HUD for failure to close if the purchaser is

determined by HUD to be an unacceptable buyer.

100% of the deposit will be forfeited to HUD if the sale fails to close for any other reason.

Owner-Occupant Purchasers

Return 100% of the deposit when:

• There has been a death in the immediate family (purchaser, spouse or children living in the same

household).

• There has been a recent serious illness in the immediate family that has resulted in significant

medical expenses or substantial loss of income, thus adversely, affecting the purchaser's

financial ability to close the sale.

• There has been a loss of job by one of the primary breadwinners, or a substantial loss of income

through no fault of the purchaser.

• For an FHA insured sale, HUD (or a D.E. underwriter) determines that the purchaser is not an

acceptable borrower.

• For an uninsured sale, the purchaser was pre-approved for mortgage financing in an appropriate

amount by a recognized lender and, despite good faith efforts, is unable to obtain mortgage

financing. "Pre-approved" means a commitment has been obtained from a recognized mortgage

lender for mortgage financing in a specified dollar amount sufficient to purchase the property.

• There is other equally good cause, as determined by Ofori, in keeping with the spirit and intent of

the above policy.

Return 50% of the deposit when:

For an uninsured sale, despite good faith efforts by the purchaser, there is an inability to obtain a

mortgage loan from a recognized mortgage lender.

Forfeit 100% of the deposit when:

• No documentation is submitted.

• Documentation fails to provide an acceptable cause for the buyer's failure to close.

• Documentation is not provided within a reasonable time following contract cancellation.

Vacant Lot Sales:

The purchaser is considered to be an investor and instructions pertaining to investors

will apply.