Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 65

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 65
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addition to the property securing the loan, the lender would have the ability to look to our other assets for satisfaction of the debt
if the proceeds from the sale or other disposition of the property securing the loan are insufficient to fully repay it. Also, in order
to facilitate the sale of a property, we may allow the buyer to purchase the property subject to an existing loan whereby we remain responsible
for the debt.

If we are required to make payments under any “bad boy” carve-out guaranties that we may provide in connection with certain mortgages and related loans, our business and financial results could be materially adversely affected.

In obtaining certain nonrecourse
loans, we may provide standard carve-out guaranties. These guaranties are only applicable if and when the borrower directly, or indirectly
through agreement with an affiliate, joint venture partner or other third party, voluntarily files a bankruptcy or similar liquidation
or reorganization action or takes other actions that are fraudulent or restricted (commonly referred to as “bad boy” guaranties).
Although we believe that “bad boy” carve-out guaranties are not guaranties of payment in the event of foreclosure or other
actions of the foreclosing lender that are beyond the borrower’s control, some lenders in the real estate industry have recently
sought to make claims for payment under such guaranties. In the event such a claim were made against us under a “bad boy”
carve-out guaranty following a foreclosure, and such claim were successful, our business and financial results could be materially adversely
affected.

Interest-only indebtedness may increase our risk of default and ultimately may reduce our funds available for distribution to our stockholders.

We may finance our property
acquisitions using interest-only mortgage indebtedness. During the interest-only period, the amount of each scheduled payment will be
less than that of a traditional amortizing mortgage loan. The principal balance of the mortgage loan will not be reduced (except in the
case of prepayments) because there are no scheduled monthly payments of principal during this period. After the interest-only period,
we will be required either to make scheduled payments of amortized principal and interest or to make a lump-sum or “balloon”
payment at maturity. These required principal or balloon payments will increase the amount of our scheduled payments and may increase
our risk of default under the related mortgage loan. If the mortgage loan has an adjustable interest rate, the amount of our scheduled
payments also may increase at a time