Realization Upon Defaulted Mortgage Loans; Workouts Sample Clauses

Realization Upon Defaulted Mortgage Loans; Workouts. (a) The Servicer may foreclose upon or otherwise comparably convert the ownership in the name of, or on behalf of, the Trustee on behalf of the Trust Fund of Mortgaged Properties relating to defaulted Mortgage Loans as to which no satisfactory arrangements can be made for collection of Delinquent payments. The decision of the Servicer whether to foreclose on a defaulted Mortgage Loan shall be subject to its determination that the proceeds of foreclosure would exceed the costs and expenses of bringing such a proceeding; such determination to be based upon a recent appraisal, brokers price opinion or other evidence of the property's current fair market value and the Servicer's recent experience in realizing on similar properties similarly located. In connection with such foreclosure or other conversion, the Servicer shall exercise such of the rights and powers vested in it hereunder, and use the same degree of care and skill in their exercise or use, as prudent mortgage lenders would exercise or use under the circumstances in the conduct of their own affairs and consistent with applicable law and with its normal and customary servicing standards, including, but not limited to, advancing funds for the payment of taxes, amounts due with respect to Senior Liens, and insurance premiums. In the event a deficiency action is available against the Mortgagor or any other person, the Servicer may proceed for the deficiency. The Servicer may retain twenty-five percent (25%) of the net proceeds received pursuant to a deficiency action as compensation for entering into such action. The Servicer shall sell any REO Property prior to the close of the third calendar year beginning after the year of its acquisition by the Trust Fund, at such price as the Servicer in good faith deems necessary to comply with this covenant unless (i) the Ser▇▇▇▇▇ ▇▇▇▇▇ns for the Trustee an Opinion of Counsel (the expense of which opinion shall be a Servicing Advance) experienced in federal income tax matters and acceptable to the Trustee, addressed to the Trustee and the Servicer, to the effect that the holding by the Trust Fund of such REO Property for any greater period will not result in the imposition of taxes on "prohibited transactions" of the Trust Fund or of any Constituent REMIC as defined in Code Section 860F or cause any Constituent REMIC to fail to qualify as a REMIC at any time that any Certificates are outstanding or (ii) the Servicer shall have applied for an extension of time in...