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Common use of Non-Judicial Foreclosure Sale Clause in Contracts

Non-Judicial Foreclosure Sale. If, following an Event of Default, Servicer determines that it is in the best interest of the Lenders to enforce of the power of sale contained in the Security Document and to proceed to sell the Security Property pursuant to a non-judicial foreclosure sale (a “Foreclosure Sale”), Lender and Servicer agree that Servicer or its affiliate(s) will act on behalf of all of the Lenders in connection with such Foreclosure Sale. In connection therewith, Lender and Servicer hereby agree as follows: (a) In the event a Foreclosure Sale is required, Servicer shall, prior to the date of the Foreclosure Sale, retain a qualified foreclosure company or other foreclosure agent (a “Foreclosure Agent”) to administer the Foreclosure Sale on the Lenders’ behalf. If the Foreclosure Agent is not the named Trustee under the Security Document, Servicer shall provide for the named trustee to execute an assignment of the trustee’s obligations and duties as trustee to the Foreclosure Agent for the purpose of administering the Foreclosure Sale on the Lender’s behalf. Any Foreclosure Agent retained by Servicer shall be entitled to fees for the foreclosure services provided, which fees shall be reasonable in light of fees and other compensation payable for similar services in the area where the Security Property is located. All fees and costs incurred in connection with the Foreclosure Sale including any fees or other compensation payable to the Foreclosure Agent shall be Loan Expenses governed by Article VI of this Agreement. (b) At least 15 Business Days prior to the date of the Foreclosure Sale, Servicer shall give the Lenders written notice of the date and time the Foreclosure Sale shall be held (“Foreclosure Sale Notice”), which Foreclosure Sale Notice shall include a copy of the statutorily required Notice of Trustee’s Sale recorded in the Official Records and a statement of the total accrued and unpaid amounts due from the Borrower which may be credited towards the Lenders’ purchase of the Security Property at the Foreclosure Sale (the “Full Credit Bid”). The Foreclosure Sale Notice shall also include either a notice to the Lenders of Servicers intention to conduct the Foreclosure Sale in accordance with the Default Bid Instructions outlined in subsection (d) below or a written proposal from the Servicer outlining alternative bidding instructions for approval by a Lender Majority. Servicer shall be authorized to instruct the Foreclosure Agent to act in accordance with the Default Bid Instructions at the Foreclosure Sale without further Lender approval so long as (i) the Foreclosure Sale Notice includes a statement of Servicer’s intention to do so; and (ii) Servicer has not received a Lender Bid Proposal from one or more Lenders as of the Lender Bid Deadline in accordance with subsection (c), below. Any bid instructions proposed by the Servicer or any Lender that materially deviate from the Default Bid Instructions shall be approved by a Lender Majority prior to the date of the Foreclosure Sale. (c) Each Lender shall have five Business Days from the date of the Foreclosure Sale Notice (the “Lender Bid Deadline”) to deliver to the Servicer such Lender’s written proposal for bidding instructions that materially differ from those described in the Foreclosure Sale Notice (a “Lender Bid Proposal”). Such Lender Bid Proposal shall set forth a clear written description of the proposed bidding instructions to be used by the Servicer at the Foreclosure Sale and a request by the submitting Lender for the Servicer to circulate the Lender’s Lender Bid Proposal to the other Lenders for consideration and approval. Within two Business Days following the Lender Bid Deadline, Servicer shall deliver to each Lender a written statement outlining the material terms of each properly submitted Lender Bid Proposal together with a request that each Lender affirmatively approve either the original bid instructions set forth in the Foreclosure Sale Notice or one of the alternative Lender Bid Proposals forwarded by Servicer to the Lenders pursuant to the terms hereof (collectively, the “Bid Proposals”). Upon the approval of one of the Bid Proposals by Lenders representing a Lender Majority (the “Majority Instructions”), Servicer shall be authorized to instruct the Foreclosure Agent to accept bids for the Security Property at the Foreclosure Sale in accordance therewith. Servicer shall notify the Lenders of the adoption of the Majority Instructions promptly following Servicer’s receipt of the requisite approvals from the Lender Majority; however, the failure of Servicer to notify any Lender of the adoption of a Bid Proposal or the terms of the approved Majority Instructions prior to the Foreclosure Date, shall not affect the right of Servicer to take those actions required to implement the Majority Instructions at the time of the Foreclosure Sale. (d) Unless Servicer has proposed alternative bidding instructions in the Foreclosure Notice or has received one or more Lender Bid Proposals prior to the Lender Bid Deadline, Servicer shall be authorized to instruct the Foreclosure Agent at the Foreclosure Sale to conduct the Foreclosure Sale as follows (the “Default Bid Instructions”): (i) a reasonable starting bid for the Security Property shall be determined by the Servicer and the Foreclosure Agent in light of the Loan amount and the type and location of the Security Property being sold;

Appears in 4 contracts

Samples: Loan Servicing and Equity Interest Agreement, Loan Servicing and Equity Interest Agreement, Loan Servicing and Equity Interest Agreement

Non-Judicial Foreclosure Sale. If, following an Event of Default, Servicer determines that it is in the best interest of the Lenders to enforce of the power of sale contained in the Security Document Deed of Trust and to proceed to sell the Security Property pursuant to a non-judicial foreclosure sale (a “Foreclosure Sale”), Lender and Servicer agree that Servicer or its affiliate(s) will act on behalf of all of the Lenders in connection with such Foreclosure Sale. In connection therewith, Lender and Servicer hereby agree as follows: (a) In the event a Foreclosure Sale is required, Servicer shall, prior to the date of the Foreclosure Sale, retain a qualified foreclosure company or other foreclosure agent (a “Foreclosure Agent”) to administer the Foreclosure Sale on the Lenders’ behalf. If the Foreclosure Agent is not the named Trustee under the Security DocumentDeed of Trust, Servicer shall provide for the named trustee to execute an assignment of the trustee’s obligations and duties as trustee to the Foreclosure Agent for the purpose of administering the Foreclosure Sale on the Lender’s behalf. Any Foreclosure Agent retained by Servicer shall be entitled to fees for the foreclosure services provided, which fees shall be reasonable in light of fees and other compensation payable for similar services in the area where the Security Property is located. All fees and costs incurred in connection with the Foreclosure Sale including any fees or other compensation payable to the Foreclosure Agent shall be Loan Expenses governed by Article VI Section 10 of this Agreement. (b) At least 15 Business Days prior to the date of the Foreclosure Sale, Servicer shall give the Lenders written notice of the date and time the Foreclosure Sale shall be held (“Foreclosure Sale Notice”), which Foreclosure Sale Notice shall include a copy of the statutorily required Notice of Trustee’s Sale recorded in the Official Records and a statement of the total accrued and unpaid amounts due from the Borrower which may be credited towards the Lenders’ purchase of the Security Property at the Foreclosure Sale (the “Full Credit Bid”). The Foreclosure Sale Notice shall also include either a notice to the Lenders of Servicers intention to conduct the Foreclosure Sale in accordance with the Default Bid Instructions outlined in subsection (d) below or a written proposal from the Servicer outlining alternative bidding instructions for approval by a Lender Majority. Servicer shall be authorized to instruct the Foreclosure Agent to act in accordance with the Default Bid Instructions at the Foreclosure Sale without further Lender approval so long as (i) the Foreclosure Sale Notice includes a statement of Servicer’s intention to do so; and (ii) Servicer has not received a Lender Bid Proposal from one or more Lenders as of the Lender Bid Deadline in accordance with subsection (c), below. Any bid instructions proposed by the Servicer or any Lender that materially deviate from the Default Bid Instructions shall be approved by a Lender Majority prior to the date of the Foreclosure Sale. (c) Each Lender shall have five Business Days from the date of the Foreclosure Sale Notice (the “Lender Bid Deadline”) to deliver to the Servicer such Lender’s written proposal for bidding instructions that materially differ from those described in the Foreclosure Sale Notice (a “Lender Bid Proposal”). Such Lender Bid Proposal shall set forth a clear written description of the proposed bidding instructions to be used by the Servicer at the Foreclosure Sale and a request by the submitting Lender for the Servicer to circulate the Lender’s Lender Bid Proposal to the other Lenders for consideration and approval. Within two Business Days following the Lender Bid Deadline, Servicer shall deliver to each Lender a written statement outlining the material terms of each properly submitted Lender Bid Proposal together with a request that each Lender affirmatively approve either the original bid instructions set forth in the Foreclosure Sale Notice or one of the alternative Lender Bid Proposals forwarded by Servicer to the Lenders pursuant to the terms hereof (collectively, the “Bid Proposals”). Upon the approval of one of the Bid Proposals by Lenders representing a Lender Majority (the “Majority Instructions”), Servicer shall be authorized to instruct the Foreclosure Agent to accept bids for the Security Property at the Foreclosure Sale in accordance therewith. Servicer shall notify the Lenders of the adoption of the Majority Instructions promptly following Servicer’s receipt of the requisite approvals from the Lender Majority; however, the failure of Servicer to notify any Lender of the adoption of a Bid Proposal or the terms of the approved Majority Instructions prior to the Foreclosure Date, shall not affect the right of Servicer to take those actions required to implement the Majority Instructions at the time of the Foreclosure Sale. (d) Unless Servicer has proposed alternative bidding instructions in the Foreclosure Notice or has received one or more Lender Bid Proposals prior to the Lender Bid Deadline, Servicer shall be authorized to instruct the Foreclosure Agent at the Foreclosure Sale to conduct the Foreclosure Sale as follows (the “Default Bid Instructions”): (i) a reasonable starting bid for the Security Property shall be determined by the Servicer and the Foreclosure Agent in light of the Loan amount and the type and location of the Security Property being sold;

Appears in 2 contracts

Samples: Loan Servicing and Equity Interest Agreement, Loan Servicing and Equity Interest Agreement

Non-Judicial Foreclosure Sale. If, following an Event of Default, Servicer determines that it is in the best interest of the Lenders to enforce of the power of sale contained in the Security Document and to proceed to sell the Security Property pursuant to a non-judicial foreclosure sale (a “Foreclosure Sale”), Lender and Servicer agree that Servicer or its affiliate(s) will act on behalf of all of the Lenders in connection with such Foreclosure Sale. In connection therewith, Lender and Servicer hereby agree as follows: (a) In the event a Foreclosure Sale is required, Servicer shall, prior to the date of the Foreclosure Sale, retain a qualified foreclosure company or other foreclosure agent (a “Foreclosure Agent”) to administer the Foreclosure Sale on the Lenders’ behalf. If the Foreclosure Agent is not the named Trustee under the Security Document, Servicer shall provide for the named trustee to execute an assignment of the trustee’s obligations and duties as trustee to the Foreclosure Agent for the purpose of administering the Foreclosure Sale on the Lender’s behalf. Any Foreclosure Agent retained by Servicer shall be entitled to fees for the foreclosure services provided, which fees shall be reasonable in light of fees and other compensation payable for similar services in the area where the Security Property is located. All fees and costs incurred in connection with the Foreclosure Sale including any fees or other compensation payable to the Foreclosure Agent shall be Loan Expenses governed by Article VI of this Agreement. (b) At least 15 Business Days prior to the date of the Foreclosure Sale, Servicer shall give the Lenders written notice of the date and time the Foreclosure Sale shall be held (“Foreclosure Sale Notice”), which Foreclosure Sale Notice shall include a copy of the statutorily required Notice of Trustee’s Sale recorded in the Official Records and a statement of the total accrued and unpaid amounts due from the Borrower which may be credited towards the Lenders’ purchase of the Security Property at the Foreclosure Sale (the “Full Credit Bid”). The Foreclosure Sale Notice shall also include either a notice to the Lenders of Servicers intention to conduct the Foreclosure Sale in accordance with the Default Bid Instructions outlined in subsection (d) below or a written proposal from the Servicer outlining alternative bidding instructions for approval by a Lender Majority. Servicer shall be authorized to instruct the Foreclosure Agent to act in accordance with the Default Bid Instructions at the Foreclosure Sale without further Lender approval so long as (i) the Foreclosure Sale Notice includes a statement of Servicer’s intention to do so; and (ii) Servicer has not received a Lender Bid Proposal from one or more Lenders as of the Lender Bid Deadline in accordance with subsection (c), below. Any bid instructions proposed by the Servicer or any Lender that materially deviate from the Default Bid Instructions shall be approved by a Lender Majority prior to the date of the Foreclosure Sale. (c) Each Lender shall have five Business Days from the date of the Foreclosure Sale Notice (the “Lender Bid Deadline”) to deliver to the Servicer such Lender’s written proposal for bidding instructions that materially differ from those described in the Foreclosure Sale Notice (a “Lender Bid Proposal”). Such Lender Bid Proposal shall set forth a clear written description of the proposed bidding instructions to be used by the Servicer at the Foreclosure Sale and a request by the submitting Lender for the Servicer to circulate the Lender’s Lender Bid Proposal to the other Lenders for consideration and approval. Within two Business Days following the Lender Bid Deadline, Servicer shall deliver to each Lender a written statement outlining the material terms of each properly submitted Lender Bid Proposal together with a request that each Lender affirmatively approve either the original bid instructions set forth in the Foreclosure Sale Notice or one of the alternative Lender Bid Proposals forwarded by Servicer to the Lenders pursuant to the terms hereof (collectively, the “Bid Proposals”). Upon the approval of one of the Bid Proposals by Lenders representing a Lender Majority (the “Majority Instructions”), Servicer shall be authorized to instruct the Foreclosure Agent to accept bids for the Security Property at the Foreclosure Sale in accordance therewith. Servicer shall notify the Lenders of the adoption of the Majority Instructions promptly following Servicer’s receipt of the requisite approvals from the Lender Majority; however, the failure of Servicer to notify any Lender of the adoption of a Bid Proposal or the terms of the approved Majority Instructions prior to the Foreclosure Date, shall not affect the right of Servicer to take those actions required to implement the Majority Instructions at the time of the Foreclosure Sale. (d) Unless Servicer has proposed alternative bidding instructions in the Foreclosure Notice or has received one or more Lender Bid Proposals prior to the Lender Bid Deadline, Servicer shall be authorized to instruct the Foreclosure Agent at the Foreclosure Sale to conduct the Foreclosure Sale as follows (the “Default Bid Instructions”): (i) a reasonable starting bid for the Security Property shall be determined by the Servicer and the Foreclosure Agent in light of the Loan amount and the type and location of the Security Property being sold;; (ii) an initial credit bid by the Lenders shall be authorized in the amount of such starting bid; (iii) the Lenders’ credit bid shall be increased by the minimum bid amount required to enter a bid greater than any competing third-party bids up to a maximum bid equal to the Lenders’ Full Credit Bid; and (iv) the Lenders bidding shall discontinue when either the Lenders’ credit bid is sufficient to purchase the Security Property or the trustee receives a competing bid in excess of the Full Credit Bid. In no event shall Servicer, without the express written approval of a Lender Majority, instruct the trustee or the Foreclosure Agent at the Foreclosure Sale to either: (i) place a bid on the Lenders’ behalf which exceeds the Full Credit Bid; or (ii) accept a competing bid for the Security Property in an amount which is less than the Full Credit Bid available to the Lenders. (e) Notwithstanding any provision of this Section 3.3 to the contrary, if at any time prior to the Foreclosure Sale, Servicer is unclear on the appropriate bidding instructions to be utilized in at the Foreclosure Sale, Servicer may postpone the Foreclosure Sale until clear directions from the Lender Majority are received. Lender acknowledges and agrees that Servicer shall not be liable to the Lender for any claims or damages resulting from any action taken by Servicer in accordance with this Article III.

Appears in 1 contract

Samples: Loan Servicing and Equity Interest Agreement

Non-Judicial Foreclosure Sale. If, following an Event of Default, Servicer determines that it is in the best interest of the Lenders to enforce of the power of sale contained in the Security Document Deed of Trust and to proceed to sell the Security Property pursuant to a non-judicial foreclosure sale (a “Foreclosure Sale”), Lender and Servicer agree that Servicer or its affiliate(s) will act on behalf of all of the Lenders in connection with such Foreclosure Sale. In connection therewith, Lender Xxxxxx and Servicer hereby agree as follows: (a) In the event a Foreclosure Sale is required, Servicer shall, prior to the date of the Foreclosure Sale, retain a qualified foreclosure company or other foreclosure agent (a “Foreclosure Agent”) to administer the Foreclosure Sale on the Lenders’ behalf. If the Foreclosure Agent is not the named Trustee under the Security DocumentDeed of Trust, Servicer shall provide for the named trustee to execute an assignment of the trustee’s obligations and duties as trustee to the Foreclosure Agent for the purpose of administering the Foreclosure Sale on the Lender’s behalf. Any Foreclosure Agent retained by Servicer shall be entitled to fees for the foreclosure services provided, which fees shall be reasonable in light of fees and other compensation payable for similar services in the area where the Security Property is located. All fees and costs incurred in connection with the Foreclosure Sale including any fees or other compensation payable to the Foreclosure Agent shall be Loan Expenses governed by Article VI Section 10 of this Agreement. (b) At least 15 Business Days prior to the date of the Foreclosure Sale, Servicer shall give the Lenders written notice of the date and time the Foreclosure Sale shall be held (“Foreclosure Sale Notice”), which Foreclosure Sale Notice shall include a copy of the statutorily required Notice of Trustee’s Sale recorded in the Official Records and a statement of the total accrued and unpaid amounts due from the Borrower which may be credited towards the Lenders’ purchase of the Security Property at the Foreclosure Sale (the “Full Credit Bid”). The Foreclosure Sale Notice shall also include either a notice to the Lenders of Servicers intention to conduct the Foreclosure Sale in accordance with the Default Bid Instructions outlined in subsection (d) below or a written proposal from the Servicer outlining alternative bidding instructions for approval by a Lender Majority. Servicer shall be authorized to instruct the Foreclosure Agent to act in accordance with the Default Bid Instructions at the Foreclosure Sale without further Lender approval so long as (i) the Foreclosure Sale Notice includes a statement of Servicer’s intention to do so; and (ii) Servicer has not received a Lender Bid Proposal from one or more Lenders as of the Lender Bid Deadline in accordance with subsection (c), below. Any bid instructions proposed by the Servicer or any Lender that materially deviate from the Default Bid Instructions shall be approved by a Lender Majority prior to the date of the Foreclosure Sale. (c) Each Lender shall have five Business Days from the date of the Foreclosure Sale Notice (the “Lender Bid Deadline”) to deliver to the Servicer such LenderXxxxxx’s written proposal for bidding instructions that materially differ from those described in the Foreclosure Sale Notice (a “Lender Bid Proposal”). Such Lender Bid Proposal shall set forth a clear written description of the proposed bidding instructions to be used by the Servicer at the Foreclosure Sale and a request by the submitting Lender for the Servicer to circulate the Lender’s Lender Bid Proposal to the other Lenders for consideration and approval. Within two Business Days following the Lender Bid Deadline, Servicer shall deliver to each Lender a written statement outlining the material terms of each properly submitted Lender Bid Proposal together with a request that each Lender affirmatively approve either the original bid instructions set forth in the Foreclosure Sale Notice or one of the alternative Lender Bid Proposals forwarded by Servicer to the Lenders pursuant to the terms hereof (collectively, the “Bid Proposals”). Upon the approval of one of the Bid Proposals by Lenders Xxxxxxx representing a Lender Majority (the “Majority Instructions”), Servicer shall be authorized to instruct the Foreclosure Agent to accept bids for the Security Property at the Foreclosure Sale in accordance therewith. Servicer shall notify the Lenders of the adoption of the Majority Instructions promptly following Servicer’s receipt of the requisite approvals from the Lender Majority; however, the failure of Servicer to notify any Lender of the adoption of a Bid Proposal or the terms of the approved Majority Instructions prior to the Foreclosure Date, shall not affect the right of Servicer to take those actions required to implement the Majority Instructions at the time of the Foreclosure Sale. (d) Unless Servicer has proposed alternative bidding instructions in the Foreclosure Notice or has received one or more Lender Bid Proposals prior to the Lender Bid Deadline, Servicer shall be authorized to instruct the Foreclosure Agent at the Foreclosure Sale to conduct the Foreclosure Sale as follows (the “Default Bid Instructions”): (i) a reasonable starting bid for the Security Property shall be determined by the Servicer and the Foreclosure Agent in light of the Loan amount and the type and location of the Security Property being sold;; (ii) an initial credit bid by the Lenders shall be authorized in the amount of such starting bid; (iii) the Lenders’ credit bid shall be increased by the minimum bid amount required to enter a bid greater than any competing third-party bids up to a maximum bid equal to the Lenders’ Full Credit Bid; and (iv) the Lenders bidding shall discontinue when either the Lenders’ credit bid is sufficient to purchase the Security Property or the trustee receives a competing bid in excess of the Full Credit Bid. In no event shall Servicer, without the express written approval of a Lender Majority, instruct the trustee or the Foreclosure Agent at the Foreclosure Sale to either: (i) place a bid on the Lenders’ behalf which exceeds the Full Credit Bid; or (ii) accept a competing bid for the Security Property in an amount which is less that Full Credit Bid available to the Lenders. (e) Notwithstanding any provision of this Section 14 to the contrary, if at any time prior to the Foreclosure Sale, Servicer is unclear on the appropriate bidding instructions to be utilized in at the Foreclosure Sale, Servicer may postpone the Foreclosure Sale until clear directions from the Lender Majority are received. Xxxxxx acknowledges and agrees that Servicer shall not be liable to the Lender for any claims or damages resulting from any action taken by Servicer in accordance herewith.

Appears in 1 contract

Samples: Loan Servicing and Equity Interest Agreement