Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 66

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 66
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 · | tighter loan covenants; |

| · | reduced loan-to-value ratios and 
 resulting borrower proceeds; and |

| · | higher amortization and reserve 
 requirements.                   |

Some of our mortgage loans may have
“due-on-sale” provisions, which may impact the manner in which we acquire, sell and/or finance our properties.

We may obtain financing with
“due-on-sale” and/or “due-on-encumbrance” clauses when financing our properties. Due-on-sale clauses in mortgages
allow a mortgage lender to demand full repayment of the mortgage loan if the borrower sells the mortgaged property. Similarly, due-on-encumbrance
clauses allow a mortgage lender to demand full repayment if the borrower uses the real estate securing the mortgage loan as security
for another loan. In such event, we may be required to sell our properties on an all-cash basis, which may make it more difficult to
sell the property or reduce the selling price.

Lenders may be able to recover against our other properties under our mortgage loans.

In financing our property
acquisitions, we will seek to obtain secured nonrecourse loans. However, only recourse financing may be available, in which event, in
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