During the period until settlement, the Assquire® system also accommodates, at the option of the parties to the contracts, additional features allowing parties to contract to separately embrace the benefit of certain insurances and other protective features.
The contracts include the mandatory return to the Mortgage Alternative (MA) buyer of a monthly savings component that is embedded into the monthly payments an MA buyer makes to the Assquire® investor from month 61 of the occupancy, should the MA buyer elect to forfeit their deposit payments and monthly rent payments to date by defaulting on the purchase or not be able to settle their Purchase Contract because of an MA buyer’s adverse personal mishap during the occupancy period (e.g. loss of job, divorce etc at time of intended settlement).
Note: Personal insurances of MA buyers are not mandatory, so please seek independent professional advice on what insurances are correct for your case.
Indeed, in such circumstances of buyer default, no fire sale occurs for the MA buyer, as it might with a conventional mortgage; the Assquire® investor simply gets the house back and keeps all of the capital growth (and in all cases, except Assquire® investor bankruptcy, the Assquire® investor also retains the higher yield payments already received) to date.
Special rules apply for an Assquire® investor going broke.
See our FAQ page: “What if the Assquire® investor goes broke” for these details and ask your legal advisers to check out the Purchase Contract terms.
So essentially every conceivable situation you can think of has already been thought through by the intellectual property’s product design team and Haigslea Residential Limited (HRL), in the design of this internationally patented home financing system.