Ch. 220                                           LAWS OF MARYLAND

(1)  IMMEDIATE ACCELERATION OF THE LOAN INDEBTEDNESS
IF A BORROWER VIOLATES § 2-614 OF THIS SUBTITLE, OR IF THE LOAN
IS IN DEFAULT;

(2)  IN THE CASE OF PREFERRED INTEREST RATE LOANS
UNDER § 2-602(1) OF THIS SUBTITLE, FULL ACCELERATION OF PRINCIPAL
AFTER 5 YEARS IF THE BORROWER NO LONGER QUALIFIES AS A HOUSEHOLD
OF LIMITED INCOME AND IS ABLE TO QUALIFY FOR CONVENTIONAL
MORTGAGE FINANCING;

(3)  IN THE CASE OF REVERSE EQUITY LOANS MADE UNDER §
2-602(4) OF THIS SUBTITLE;

(I)  FULL OR PARTIAL DEFERRALS ON PAYMENT OF
INTEREST AND PRINCIPAL UNTIL SALE, CONVEYANCE PURSUANT TO A WILL
OR TRUST INSTRUMENT, OR OTHER TRANSFER OF THE MORTGAGED PROPERTY
OR A BENEFICIAL INTEREST THEREIN; AND

(II)  FORGIVENESS OF ACCRUED INTEREST IN EXCESS
OF THE AVAILABLE EQUITY IN THE MORTGAGED PROPERTY AT THE TIME OF
ANY SUCH CONVEYANCE; AND

(4)  IN THE CASE OF EMERGENCY ASSISTANCE LOANS MADE
UNDER § 2-602(3) OF THIS SUBTITLE, FULL OR PARTIAL DEFERRALS ON
PAYMENT OF INTEREST AND PRINCIPAL UNTIL A STATED DATE AT WHICH IT
IS REASONABLY ANTICIPATED THAT THE BORROWER SHOULD BE ABLE TO
MAKE FULL OR PARTIAL PAYMENTS.

(C) A MORTGAGE SHALL INCLUDE THE RIGHT OF THE DEPARTMENT
TO;

(1) FORECLOSE THE MORTGAGE AND AT FORECLOSURE:

(I) TAKE TITLE TO THE PROPERTY FORECLOSED ON;
OR

(II) CONVEY TITLE TO A BUYER; AND

(2) OBTAIN AND SEEK ENFORCEMENT OF A DEFICIENCY
JUDGMENT.

(D) (1) A LOAN SHALL BE SECURED BY A RECORDED LIEN ON THE
REAL PROPERTY THAT IS TO SECURE REPAYMENT OF THE LOAN, WHICH IN
THE CASE OF EMERGENCY ASSISTANCE AND REVERSE EQUITY LOANS MAY BE
A SUBORDINATE LIEN.

(2) IN THE CASE OF EMERGENCY ASSISTANCE LOANS, A LIEN
MAY BE RELEASED IF IT IS IN THE BEST FINANCIAL INTERESTS OF THE
DEPARTMENT.

(E) THE DEPARTMENT MAY REQUIRE MORTGAGES TO BE INSURED AT
THE BORROWER'S EXPENSE BY FEDERAL, STATE, OR PRIVATE
INSTRUMENTALITIES.

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