Preparation of closing documents.

CFR · 2024-01-01 · US · Title 7

(a) (1)-(2) [Reserved] (b) (1)-(8) [Reserved] (9) (10) [Reserved] (11) (i) In the space provided on the mortgage for the description of the real property security, the leasehold estate and the land covered by the lease must be described. The following language must be used unless modified by a State Supplement: (ii) Immediately preceding the covenant starting with the words “should default,” the following covenant will be added: (12) (13) [Reserved] (c) [Reserved] (d) (1) (i) The prior lienholder shall agree not to declare the lien in default or accelerate the indebtedness secured by the prior lien for a specific period of time after notice to the agency. The agreement must: (A) Provide that the specified period of time will not commence until the lienholder gives written notice of the borrower's default and the prior lienholder's intention to accelerate the indebtedness to the agency office servicing the loan, (B) Include the address of the agency servicing office, (C) Give the agency the option to cure any monetary default by paying the amount of the borrower's delinquent payments to the prior lienholder, or pay the obligation in full and have the lien assigned to the agency, and (D) Provide that the prior lienholder will not declare the lien in default for any nonmonetary reason if the agency commences liquidation proceedings against the property and thereafter acquires the property. (ii) When the prior lien secures future advances, including the lienholder's costs for bor

official document · source cfr-2024 · id 7:§ 1927.57