Sec. 05.04.09.09. Subordinate Loans

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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.

                    
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