Agreement for debt liquidation from refinancing of property in creditor's name.

This agreement made this _________[date] by and between _________, debtor, and _________, creditor.

Recitals:

Debtor [has been and is now engaged in the construction of dwelling houses and] is indebted to creditor for _________[e.g., building materials purchased from creditor between _________[date] and _________[date]] in the total amount of $_____.

Debtor is unable, at the present time, to pay this debt and desires to make arrangements to give creditor security and means of satisfaction for the debt.

Debtor is the owner of a _________[e.g., dwelling house and _________] located at _________ _________ Street, more particularly described in that certain mortgage recorded in _________ County records in mortgage book _________ at page _________.

Debtor has attempted to refinance the above described properties for the purpose of raising money to liquidate the above described debt to creditor.

Creditor desires security and means of satisfying the debt of debtor to creditor and is willing to attempt to refinance the premises in creditor's name and to apply monies raised to the indebtedness.

Therefore, in consideration of the foregoing premises and of the mutual agreements of the parties set forth below, it is agreed as follows:

1. Debtor will convey the above described properties to creditor, and creditor will accept those properties and assume the existing mortgage on them.

2. Creditor will undertake to secure, if possible, a new mortgage or mortgages upon the above described properties. In the event creditor does secure such a new mortgage or mortgages, all monies received by creditor, over and above the existing mortgage indebtedness upon the properties, and creditor's expense in obtaining the new mortgage or mortgages will be credited to the account of debtor. In the event that creditor is able to obtain a new mortgage or mortgages upon the properties in an amount which exceeds the debt of debtor to creditor, creditor will refund to debtor the excess amount. Creditor agrees that, after adequate mortgage or mortgages have been secured upon the above described property, creditor will reconvey the properties to debtor for the sole consideration of the assumption by debtor of the new mortgage indebtedness against the properties.

In the event that debtor secures a new mortgage or mortgages upon the properties after the properties have been conveyed by debtor to creditor, creditor will reconvey the properties to debtor for the purpose of securing the mortgages. All monies received pursuant to the mortgages will be paid by debtor to creditor on the debt of debtor to creditor.

Until such time as an adequate new mortgage or mortgages are secured upon the properties creditor will rent the properties to debtor for a sum that will equal the monthly payments due upon the existing mortgage on the properties.

It is the purpose of this agreement, and the intent of the parties to provide security for the debt of debtor to creditor and also to provide creditor with a means of satisfying this debt, and it is agreed that creditor does not desire and is not to have any profit from the properties conveyed by debtor to creditor and that all monies received by creditor, after deducting creditor's expenses, shall be applied to the debt owed by the debtor to creditor.

If the debt of debtor to creditor is paid by or for debtor by means other than the mortgage of the properties, creditor will reconvey the properties to debtor.