Plain Text Law

Regulation .09 Subordinate Loans.

Regulation .09 Subordinate Loans.Copy Citation

In addition to the requirements of Regulations .07 and .08 of this chapter, for program loans secured by a subordinate mortgage or deed of trust, the borrower shall obtain from each superior mortgagee a written agreement, in the form acceptable to the Department and the Office of the Attorney General, as follows:
A.
Acknowledging and consenting to the subordinate lien of the Department;
B.
Agreeing to provide timely notice to the Department in the event of default by the borrower on the superior mortgage; and
C.
Agreeing to suspend acceleration and foreclosure of the superior lien for a reasonable period of time if the Department brings current and maintains timely payment due on the superior mortgage.