§ 1005.751. Loss mitigation advance.
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/us/cfr/t24/s§ 1005.751·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)General. A loss mitigation advance is a reimbursement by HUD to the Holder for the advancement of funds on behalf of the Borrower in the amount necessary to assist in the reinstatement of the Borrower's Section 184 Guaranteed Loan. The loss mitigation advance is a subordinate lien in favor of HUD. More than one loss mitigation advance may be made to an eligible Borrower.
(b)Borrower eligibility. To be eligible for a loss mitigation advance:
(1)The Borrower's Section 184 Guaranteed Loan is 90 or more days past due:
(2)The Borrower has the ability to resume making on-time monthly loan payments and the property is owner occupied.
(3)\[Reserved\]
(c)Terms. The loss mitigation advance shall:
(1)Include all arrearages, which refers to any amounts needed to bring the Borrower's Section 184 Guaranteed Loan current;
(2)Provide that all prior loss mitigation advances, if any, in total must not exceed 30 percent of the unpaid principal balance as of the date of default;
(3)Include any other terms and conditions, as may be prescribed by Section 184 Program Guidance; and
(4)Along with another loss mitigation, where applicable, fully reinstate the Section 184 Guaranteed Loan upon the Borrower's acceptance of the loss mitigation advance.