# COMAR Title 05 — Department of Housing and Community Development

## Subtitle 03 — Homeownership Programs

### Chapter 01 — Preferred Interest Rate Loan Program

#### Regulation .17 Power of the Department.

*COMAR 05.03.01.17*

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.