Common use of Realization Upon Defaulted Loans Clause in Contracts

Realization Upon Defaulted Loans. (a) Any Liquidation Proceeds, Insurance Proceeds or Condemnation Proceeds received in respect of a Loan or the related Mortgaged Property or Pledged Property shall be deposited to the Servicer Account pursuant to Section 3.05(c) hereof and applied pursuant to Section 3.06(a) hereof. (b) The Servicer shall not obtain title to a Mortgaged Property or Pledged Property as a result of a foreclosure, deed in lieu of foreclosure or otherwise, and shall not otherwise acquire possession of any Mortgaged Property or Pledged Property. (c) The Servicer shall no longer service the Defaulted Loan once it has become an REO Mortgage Loan. The Seller or the Buyer shall notify the Servicer when a Defaulted Loan becomes an REO Mortgage Loan then such REO Mortgage Loan shall no longer appear on the Monthly Remittance Report.

Realization Upon Defaulted Loans. (a) Any Liquidation Proceeds, Insurance Proceeds or Condemnation Proceeds received in respect of a Loan or the related Mortgaged Property or Pledged Property shall be deposited to the Servicer Account pursuant to Section 3.05(c) hereof and applied pursuant to Section 3.06(a) hereof. (b) The Servicer shall not obtain title to a Mortgaged Property or Pledged Property as a result of a foreclosure, deed in lieu of foreclosure or otherwise, and shall not otherwise acquire possession of any Mortgaged Property or Pledged Property. (c) The Owner shall notify the Servicer when a Defaulted Loan becomes an REO Mortgage Loan. The Servicer shall no longer service the Defaulted Loan once it has become an REO Mortgage Loan. The Seller or the Buyer shall notify the Servicer when a Defaulted Loan becomes an REO Mortgage Loan then and such REO Mortgage Loan shall no longer appear on the Monthly Remittance Report.