Seller's Closing Guarantee Offer -  Terms and Conditions


Our Seller's Closing Guarantee offer (also known herein as the "offer" or "program") is an optional feature of our Approved Home Buyer Program. For eligible transactions where the borrowers have participated in our Approved Home Buyer™ Program and have been approved for a mortgage loan from Local Mortgage, Inc. (known herein as "LMI" or "Lender") we may issue a Seller's Closing Guarantee Confirmation Letter guaranteeing the borrower's eligibility for a home loan and thus ability to fulfill obligations as a purchaser of Seller's property under the terms of a Sales/Purchase Agreement between those parties. Borrower/s herein refer to all borrowers or loan applicants party to the loan application made to LMI. Terms and conditions of this guarantee are defined herein and further in the Seller's Closing Guarantee Confirmation Letter. By participating in this program you (the "Seller/s" of the property being purchased by our loan applicant/s) agree to these terms and conditions. 

The Guarantee:

If the Purchaser/s of Seller/s property all being approved borrower/s on a loan application made to LMI have obtained approval and an Approved Home Buyer™ Confirmation Letter from LMI and have complied with all terms of our Approved Home Buyer™ Program, and are subsequently not able to secure a mortgage loan as defined in said Approved Home Buyer™ Confirmation Letter because LMI is no longer able or willing to close Purchaser/Borrower's loan causing the purchase/sale contract to fail to close, LMI will pay the Seller/s the sum of two thousand dollars ($2,000).

Requirements and Exclusions:

No payment will be made to Seller/s should any of the following requirements not be met or should any exclusionary conditions occur:


1. Borrower/s must have no material change in employment or income sources or amounts after making application for a mortgage.

2. Borrower/s must have no material change in the nature, amount or availability of any assets disclosed on their loan application including funds necessary for closing the sale transaction.

3. Borrower's must have no material change in outstanding debt as disclosed on their loan application and/or reflected on their credit report at time of application which would be detrimental to their creditworthiness such as new accounts, newly disclosed late payments or derogatory items such as public records for judgments or bankruptcies, etc.  

4. There may be no change in the terms of the sale of the property contained in the fully-executed Purchase/Sale Agreement provided to LMI on or before the date any Seller's Closing Guarantee Confirmation Letter is issued.

5. The property being sold must appraise for an amount equal to or greater than the purchase price reflected in the fully-executed Purchase/Sale Agreement provided to LMI by an appraiser of LMI's choosing.

6. No detrimental property conditions may be reflected in any appraisal, inspection, pest inspection, survey or flood hazard determination which becomes known to LMI after approval.

7. There may be no exceptions or exclusions contained on any title insurance commitment which affect the Borrower/s ability to take clear fee simple title to the property.


1. Seller/s may not be an entity other than natural person/s acting on their own behalf. Seller/s who are business entities, trusts, estates, etc. are not eligible for this guarantee.

2. The property may not in any manner be ineligible for financing based on requirements contained in the guidelines of Fannie Mae, Freddie Mac, FHA, VA, USDA or applicable private or governmental mortgage investors, guarantors or insurers.

3. Seller must have sole legal ownership of the property and ability to transfer free, clear and unencumbered fee simple title to the Borrower/s at closing. 

4. There may be no circumstances of the Seller/s,  Borrower/s or property which disenable LMI from obtaining Lender's Title Insurance from an insurer of their choosing.

5. The purchase and sale transaction must be an arm's length transaction and borrower/s and Seller/s may have no relationship or mutual interest affecting same.

While participating in this program you agree to electronic communication (email and/or SMS text) and to electronic submission of documentation via file upload or email. Local Mortgage, Inc. will not confirm delivery or your receipt of any communications.

This offer is void where prohibited by applicable law and in states where Local Mortgage, Inc. does not currently maintain a mortgage lender license. Any dispute arising from this program will be adjudicated under Tennessee law and all parties submit to the exclusive jurisdiction of the State and Federal Courts located in Shelby County, Tennessee.