DEPARTMENT OF HOUSING-2009 - Laserfiche WebLink

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s n ~ • ~ _. F. The Division will create a separate reuse account within the City's accounting system for payments made on CalHome Program loans. This will enable the City to track, spend appropriately and report on these funds. X. Monitoring The Division will use its existing database and monitoring procedures for the owner-occupancy requirement of the CalHome Program. XI. Credit Counseling The Division will continue to follow existing procedure, and refer homeowners who require such assistance to established credit counseling services. X. Defaults and Foreclosures Should a default and/or foreclosure occur, the Division will follow the policy adopted by the City Council at its meeting of June 1, 1992. That policy authorizes the Executive Director of the Community Development Agency to take any of the following actions to protect the City's interests: a. Initiating foreclosure proceedings; b. Bidding at a foreclosure sale in an amount sufficient to protect the City's security interest; c. Purchasing a senior note and deed of trust or other lien; d. Acquiring property through foreclosure or deed in lieu of foreclosure. The Executive Director may determine not to take any of the above actions when in the Executive Director's opinion such actions would be financially infeasible or would be counter-productive to the interests or objective of the City. XI. Subordinations In accordance with Section 119 of the CalHome Program Guidelines, the lien securing payment of the program loan shall be subject only to liens, ~`, encumbrances and other matters of record reviewed and approved by the Division in the exercise of its responsibility for underwriting the loan. Refinancing of the first mortgage loan, transfer of the property to another party, or assumption of the first mortgage loan by another party will call the CalHome Program loan due and payable. \\cda-ch\user$\MAguilar\Desktop\Loan Servicing Plan 2008.docx