Md. Code Regs. 05.03.01.17

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.03.01.17 - Power of the Department

A. The Department may:

(1) Assign a mortgage for value;

(2) Release a mortgage;

(3) Foreclose a mortgage;

(4) Acquire property securing a loan in default;

(5) Encumber, sell, or otherwise dispose of property acquired in connection with a loan in default; or

(6) Obtain and seek enforcement of a deficiency judgment.

B. In the event of default, as provided in the loan documents, or in the event of a prospective default, the Department, in its sole discretion, may:

(1) Modify the rate of interest;

(2) Modify the time or amount of payment;

(3) Modify the term of the loan;

(4) Modify the loan in any other way in order to promote repayment of the loan and achieve the purpose of the Program;

(5) Accelerate the loan and foreclose on the mortgage, or accept a deed instead of foreclosure;

(6) Accept a deed in lieu of foreclosure whereby the Department accepts a voluntary conveyance of the property securing the loan in exchange for cancellation of debt;

(7) Permit a short sale whereby the borrower sells the property and pays less than the full amount of the mortgage debt, if the Department determines that loan loss will be minimized as a result; or

(8) Take any other action permitted under the Act.

Md. Code Regs. 05.03.01.17

Regulations .17 amended effective September 1, 1974 (1:2 Md. R. 112)
Regulations .17 amended effective July 23, 1975 (2:16 Md. R. 1138)
Regulations .17 adopted as an emergency provision effective January 25, 1989 (16:3 Md. R. 334); emergency status expired July 25, 1989; adopted permanently effective August 7, 1989 (16:15 Md. R. 1650)
Regulations .17 under a new chapter, Preferred Interest Rate Loan Program, adopted effective July 22, 1991 (18:14 Md. R. 1609)