Groundfloor requires the borrower to insure the security property against physical damage for the life of the loan. Proof of insurance coverage must be provided before the loan is approved and closed.
The insurance policy includes a standard Mortgagee clause and names Groundfloor in this clause. In the event coverage is cancelled by the borrower or insurer, the insurance company is obligated to notify Groundfloor in writing of such cancellation. If a policy cancellation notice is received, Groundfloor will purchase insurance on the property and will pass the cost of the policy to the borrower’s loan. The cost of the insurance policy is recovered from the borrower upon repayment of the loan or recovery on the asset.
Groundfloor also requires that a lender’s loss payee endorsement appear in the policy. This clause ensures that Groundfloor will be listed as a loss payee on any proceeds issued in connection with an insured loss on the property.
As a condition of any loan extension provided to the borrower, Groundfloor requires the borrower to provide evidence of insurance for the duration of the extension period.
WE MAY SOLICIT INTEREST FROM RESIDENTS OF A LIMITED NUMBER OF STATES: MA, MD, DC, VA, GA, IL, TX, WA, CA
The information on this website does not constitute an offer to sell or a solicitation of an offer to make an investment (the “Investment”) in the limited recourse obligations (or “LROs”) described herein in any state or jurisdiction in which we are not qualified to do so. No such offer or solicitation will be made prior to the delivery of definitive documentation relating to the matters described herein. All Investments carry risks. Before making an investment decision with respect to an Investment in a particular series of LROs, potential investors are advised to carefully read the investment agreement that will govern the Investment and the related subscription, solicitation of interest and offering circular documents (the “Documents”). You should consult with your own attorneys, accountants and other professional advisors prior to making an Investment.
This overview contains a preliminary summary of the purpose and principal business terms of the Investment. This summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussion contained in the actual text of the Documents.
ANY PROJECT SPECIFIC INFORMATION ON THIS WEBSITE MUST BE READ IN CONJUNCTION WITH THE OFFERING CIRCULAR IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE OFFERING CIRCULAR MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING.
Disclaimer: Neither the SEC nor any state securities commission or regulatory authority approved, passed upon or endorsed the merits of the offering described in the Offering Circular or reflected on this website.
GROUNDFLOOR’s services do not constitute “crowdfunding” as described in Title III of the Jumpstart Our Business Startups Act (“JOBS Act”).