Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 38

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 38
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, and poor workmanship. Additionally, containment measures arising from any future outbreaks of infectious disease,
which may include COVID-19 or a future pandemic, may also interfere with the ability of our associates, suppliers, and other business
partners to carry out their assigned tasks or supply materials, services, or funding at ordinary levels of performance relative to the
conduct of our business. See “—Our business, results of operations, financial condition, and cash flows may be adversely
affected by pandemics and outbreaks of infectious disease, which may include COVID-19.” If our assumptions regarding the costs
or timing of renovation and maintenance across our properties prove to be materially inaccurate, our operating results and ability to
make distributions to our stockholders may be adversely affected.

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We have in the past acquired and may from time to time in the future acquire some of our residential properties through the auction process, which could subject us to significant risks that could adversely affect us.

We have 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