What happens if property value declines and the shared appreciation is less than the original SAM amount?

If the property value declines, the borrower is not responsible for repaying more than the original Shared Appreciation Mortgage (SAM) loan amount. Because shared appreciation is based on the increase in market value, a decrease in value results in no appreciation owed. In this situation, the borrower simply repays the original SAM principal balance at the time the repayment trigger occurs.