Foreclosure Restricted Loans Clause Samples
The 'Foreclosure Restricted Loans' clause limits or prohibits the lender's ability to initiate foreclosure proceedings on certain loans under specified conditions. Typically, this clause applies to loans that meet particular criteria, such as being current on payments or falling within a protected class of borrowers, and may require the lender to pursue alternative remedies before foreclosure is permitted. Its core function is to provide borrowers with additional protection against losing their property, ensuring that foreclosure is used only as a last resort and reducing the risk of premature or unjustified foreclosure actions.
Foreclosure Restricted Loans. Within ten (10) Business Days of the Servicer becoming aware that the first formal legal proceedings for foreclosure (or deed-in-lieu of foreclosure or similar) are instituted with respect to any Foreclosure Restricted Loan on or before the first anniversary of the Closing Date (provided that such proceedings are instituted in a timely manner in accordance with the terms of this Agreement and with Accepted Servicing Practices), the Servicer shall notify the Master Servicer. Upon receipt of such notification, the Seller must, pursuant to the terms of the Mortgage Loan Sale Agreement and within five (5) Business Days thereafter, either repurchase the Foreclosure Restricted Loan or substitute a Qualifying Substitute Mortgage Loan for the affected Mortgage Loan. If the Seller shall fail to repurchase or substitute for such Foreclosure Restricted Loan within five (5) Business Days, the Servicer shall continue foreclosure proceedings consistent with the terms of this Agreement and Accepted Servicing Practices. Solely for clarification purposes, Accepted Servicing Practices shall not permit the Servicer to delay foreclosure (or deed-in-lieu of foreclosure or similar) proceedings if a purpose of such delay is to avoid the notice, purchase or substitution obligations described herein.
Foreclosure Restricted Loans. The Seller hereby represents and warrants to the Depositor that if any Mortgage Loan shall become a Foreclosure Restricted Loan, the party discovering such shall give prompt written notice to the other party. Within 5 Business Days of such discovery or receipt of notice thereof, the Seller shall either (a) repurchase such Mortgage Loan or any property acquired in respect thereof from the Depositor at the applicable Purchase Price or (b) substitute a Qualifying Substitute Mortgage Loan for the Foreclosure Restricted Loan.
Foreclosure Restricted Loans. Within ten (10) Business Days of the Servicer becoming aware that any Mortgage Loan becomes a Foreclosure Restricted Loan, the Servicer shall notify the Seller, the Depositor, the Trustee and the Master Servicer. Upon receipt of such notification, the Seller must, pursuant to the terms of the Mortgage Loan Sale Agreement and within five (5) Business Days thereafter, either repurchase the Foreclosure Restricted Loan or substitute a Qualifying Substitute Mortgage Loan for the affected Mortgage Loan. If the Seller shall fail to repurchase or substitute for such Foreclosure Restricted Loan within five (5) Business Days, the Servicer shall continue foreclosure proceedings consistent with the terms of this Agreement and Accepted Servicing Practices.
Foreclosure Restricted Loans. Each of the Seller and the Depositor hereby covenants with each other that if it discovers or receives written notice that formal legal proceedings for foreclosure (or deed-in-lieu of foreclosure or similar) are instituted with respect to a Foreclosure Restricted Loan on or before the first anniversary of the Closing Date, the party discovering such shall give prompt written notice to the other party. Within 5 Business Days of such discovery or receipt of notice thereof, the Seller shall either (a) repurchase such Foreclosure Restricted Loan or any property acquired in respect thereof from the Depositor for an amount equal to the fair market value of such Foreclosure Restricted Loan at the time of such repurchase or (b) substitute a Qualifying Substitute Mortgage Loan for the Foreclosure Restricted Loan. For purposes of this Section 1.07, “
Foreclosure Restricted Loans. Within twenty