Second Mortgage Promissory Note

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***THIS DOCUMENT IS ONLY FOR REVIEW BY AFFILIATES AND ATTORNEYS***
***CONTACT HFH-NYS TO OBTAIN AN EXECUTABLE VERSION***
Dated:
CLOSING DATE
Loan Amount:
LOAN AMOUNT
$
Property:
PROPERTY ADDRESS
CITY, New York ZIP CODE
SECOND MORTGAGE PROMISSORY NOTE
This Second Mortgage Promissory Note (“Note”) is given by Borrower (defined below) to AFFILIATE'S NAME
(“Habitat”) in connection with the Borrower’s purchase of Property (described below). Borrower’s performance of
the promises in this Note is secured by a second mortgage also signed today (the “Mortgage”). The Mortgage
secures to Habitat: (a) the repayment of the debt evidenced by this Note with interest, if any is owing, and all
renewals, extensions, and modifications of this Note; (b) the payment of all other sums with interest advanced
under the Mortgage to protect the security of the Mortgage; (c) the performance of Borrower’s covenants and
agreements under the Mortgage and this Note; and (d) Borrower’s liability for repayment of any amount as set
forth in the Rider to this Mortgage.
1.
BORROWER’S PROMISE TO PAY
In return for a loan that I/We, BORROWER(S) NAME(S), of BORROWER(S) CURRENT ADDRESS, CITY, New York ZIP
CODE (“the Borrower” or “I”) have received in connection with the purchase of the property located at PROPERTY
ADDRESS, CITY, New York ZIP CODE (“Property”), I promise to pay LOAN AMOUNT IN WORDS Dollars ($LOAN
AMOUNT) (this amount is called “Principal”), plus interest if any is owing, to the order of Habitat, or its successors
and assigns.
2.
PAYMENTS
The value of this Note reduced the purchase price I paid for the Property in the amount of $LOAN AMOUNT. No
payments shall be due and owing to Habitat and no interest shall be due and owing on the Principal unless and
until I transfer the Property as described in Paragraph 4 below or I am in Default under this Note or the Mortgage
or any other Note or Mortgage on this Property. I will make any required payments at AFFILIATE'S ADDRESS, CITY,
New York ZIP CODE , or at a different place if required by Habitat.
3.
PRINCIPAL FOREGIVENESS
Provided that Borrower maintains the Property as its principal residence for a period of SIXTY (60) months from
the date hereof, the Principal balance shall be reduced by TWO PERCENT (2%) of the initial Principal amount after
the SIXTY (60) month period. The Principal balance shall be reduced by an additional TWO PERCENT (2%) of the
initial Principal amount for every TWELVE (12) additional months thereafter for a period of THREE HUNDRED (300 )
months.
4.
DUE ON TRANSFER.
All amounts owing under this Note shall be immediately due and payable upon any Transfer of the Property.
“Transfer” means any sale, sale on land contract, conveyance, lease or other transfer of all or any part of the
Second Mortgage Promissory Note
1
Initials: ______

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