RecDoc1999-207282 1205 Warren Ave.

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�s��; a :� 13. PURCHASE OPTION UPON DEFAULT Notwithstanding the remedies provided to Agency in Section 12, above, above, the Owner grants to Agency the option to purchase the Unit, under the terms and conditions set forth in Section 7, above, upon Agency 's declaration of the Owner's default under the First Mortgage, the Promissory Note, the Deed of Trust, the Agency Note, the Second Deed of Trust, and/or this Resale Agreement. This option to purchase is given to Agency in consideration of the economic benefits received by the Owner in the form of Agency's financial assistance to the Owner in purchasing the Unit. a. EXERCISE OF OPTION: The Owner agrees that the Agency, in its sole discretion, may choose to record this option. Not later than ninety (90) days after the Owner's receipt or refusal of the Agency's notice to exercise its option under this Section, Agency shall purchase the Unit at a price equal to the Transfer Amount, as set forth in Section 9. b. HUD FORBEARANCE RELIEF: Notwithstanding other provisions of this Resale Agreement, the option granted by this Section 13 shall not be exercised by Agency when a deed of trust insured by HUD is secured by the Unit, and (1) The Owner is undergoing consideration by HUD for assignment forbearance relief; or (2) The Owner is undergoing consideration for relief under HUD's Temporary Mortgage Assistance Payment (TMAP) Program. 14. NONLIABILITY OF AGENCY In no event shall Agency become liable or obligated to the Owner or to any successor to the Owner by reason of Agency's option to purchase, set forth in Sections 7 and 13, nor shall Agency become obligated or liable to the Owner or to any successor to the Owner for any failure to exercise Agency's option to purchase. 15. RESTRICTIONS ON FORECLOSURE PROCEEDS If a creditor acquires title to the Unit through a deed in lieu of foreclosure, or if a creditor or a third party acquires title to the unit through a trustee's deed upon sale, or otherwise, the Owner shall not be entitled to the proceeds of the sale to the extent that such proceeds otherwise payable to the Owner, when added to the proceeds paid or credited to the creditor, exceed the amount the Owner would have received for a Transfer in accordance with the maximum Transfer Amount, set forth in Section 9 above (the "Excess Proceeds"). The Owner shall instruct the holder of such Excess Proceeds to pay such excess proceeds to Agency as payment for, and in consideration of, the financial assistance provided in the acquisition of the Unit. 10