§ 891.585. Default by Borrower.
120 words·~1 min read·
/us/cfr/t24/s§ 891.585·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)HAP contract provisions. The HAP contract will provide:
(1)That if HUD determines that the Borrower is in default under the HAP contract, HUD will notify the Borrower of the actions required to be taken to cure the default and of the remedies to be applied by HUD including an action for specific performance under the HAP contract, reduction or suspension of housing assistance payments and recovery of overpayments, where appropriate; and
(2)That if the Borrower fails to cure the default, HUD has the right to terminate the HAP contract or to take other corrective action.
(b)Loan provisions. Additional provisions governing default under the section 202 loan are included in the regulatory agreement and other loan documents.