1) Customer is the lender of a negotiable property agreement

An ALTCS customer has a property agreement with his cousin. The terms of the contract are as follows:

The customer’s cousin must pay $1,300 each month to pay the balance of $150,000 in exchange for the customer’s property.

There is no interest on the amount owed.

The contract does not state that it is non-negotiable.

According to the payment schedule, $125,000 is still owed on the property agreement at the time of application. Since the property agreement does not clearly state that it is non-negotiable, the remaining principal balance of $125,000 is a countable resource to the customer. The $1,300 payments made to the customer are counted as a resource and not counted as income.

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1) Customer is the lender of a negotiable property agreement

Official source

An ALTCS customer has a property agreement with his cousin. The terms of the contract are as follows:

The customer’s cousin must pay $1,300 each month to pay the balance of $150,000 in exchange for the customer’s property.

There is no interest on the amount owed.

The contract does not state that it is non-negotiable.

According to the payment schedule, $125,000 is still owed on the property agreement at the time of application. Since the property agreement does not clearly state that it is non-negotiable, the remaining principal balance of $125,000 is a countable resource to the customer. The $1,300 payments made to the customer are counted as a resource and not counted as income.