Regulation .17 Power of the Department.
Regulation .17 Power of the Department.LinkCopy Citation
A.
The Department may:
(1)
Assign a mortgage for value;
(2)
Release a mortgage;
(3)
Foreclose a mortgage;
(4)
Acquire property securing a loan in default;
(5)
Encumber, sell, or otherwise dispose of property acquired in connection with a loan in default; or
(6)
Obtain and seek enforcement of a deficiency judgment.
B.
In the event of default, as provided in the loan documents, or in the event of a prospective default, the Department, in its sole discretion, may:
(1)
Modify the rate of interest;
(2)
Modify the time or amount of payment;
(3)
Modify the term of the loan;
(4)
Modify the loan in any other way in order to promote repayment of the loan and achieve the purpose of the Program;
(5)
Accelerate the loan and foreclose on the mortgage, or accept a deed instead of foreclosure;
(6)
Accept a deed in lieu of foreclosure whereby the Department accepts a voluntary conveyance of the property securing the loan in exchange for cancellation of debt;
(7)
Permit a short sale whereby the borrower sells the property and pays less than the full amount of the mortgage debt, if the Department determines that loan loss will be minimized as a result; or
(8)
Take any other action permitted under the Act.