Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 37

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 37
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 in the past acquired
and may from time to time in the future acquire some of our residential properties through the auction process, including auctions of
properties that have been foreclosed upon by third-party lenders. Such auctions may occur simultaneously in a number of markets, including
monthly auctions on the same day of the month in certain markets. As a result, we may only be able to visually inspect properties from
the street and will purchase these properties without a contingency period and in “as is” condition with the risk that unknown
defects in the property may exist. Upon acquiring a new residential property, we may have to evict residents who are in unlawful possession
before we can secure possession and control of the property. The holdover occupants may be the former owners or residents of a property
or others who are illegally in possession. Securing control and possession from these occupants can be both costly and time-consuming
or generate negative publicity for our business and harm our reputation.

Allegations of deficiencies
in auction practices could result in claims challenging the validity of some auctions, potentially placing our claim of ownership to the
properties at risk. Since we may not have obtained title insurance policies for properties we acquired through the auction process, such
instances or such proceedings may result in a complete loss without compensation.

Title defects could lead to material losses on our investments in our properties.

Our title to a property may
be challenged for a variety of reasons, and in such instances title insurance may not prove adequate. For example, while we do not lend
to homeowners and accordingly do not foreclose on a home, our title to properties we acquire at foreclosure auctions may be subject to
challenge based on allegations of defects in the foreclosure process undertaken by other parties. In addition, we have in the past acquired,
and may from time to time in the future acquire, a number of our properties on an “as is” basis, at auctions or otherwise.
When acquiring properties on an “as is” basis, title commitments are often not available prior to purchase and title reports
or title information may not reflect all senior liens, which may increase the possibility of acquiring houses outside predetermined acquisition
and price parameters, purchasing residences with title defects and deed restrictions, HOA restrictions on leasing, or purchasing the wrong
residence without the benefit of title insurance prior to closing. Although we use various policies, procedures, and practices to assess
the state of title prior to purchase and obtain title insurance if an acquired property is placed into a securitization facility