Agreement with Prior Lienholder

Status: Original and derived artifacts are available for this document.

Download: pdf

Close

Save

Submit

AGREEMENT WITH PRIOR LIENHOLDER
UNITED STATES DEPARTMENT OF AGRICULTURE
Form RD 1927-8
(Rev. 11-07)

FORM APPROVED
OMB NO. 0575-0147
Exp. Date: MM/DD/YY

Position 5
WHEREAS

(called the ''Mortgagees'') is the holder of a certain
(Insert Mortgage, Purchase Contract of other Security Instrument)
(called the ''Security Instrument'') recorded in the Real Estate Mortgage Records of
County;
WHEREAS
(called the ''Mortgagor'') is (are) the owner(s) of certain real estate described in the above listed security instrument;
and WHEREAS, Mortgagor has applied to the United States of America, United States Department of Agriculture, acting
through the
(called the
''Government''), for a loan for the purpose of improving or purchasing and improving the real estate, to be secured by a
mortgage, deed of trust, or other security instrument that will be subject to the Security Instrument held by or for the
benefit of Mortgagee;
THEREFORE, in consideration of the making of the loan by the Government, Mortgagee, for mortgagee's self, heirs,
executors, administrators, successors, and assigns does hereby agree:
1) That the Mortgagee will not declare the Security Instrument to be in default because of the Government loan;
2) That the Mortgagee will not declare the Security Instrument to be in default and the indebtedness secured
therebywill not accelerated unless prior written notice has been provided to the Government by Certified Mail not
less than
days prior to the intended action at the following address(es):

;

A federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to
comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays
a currently valid OMB Control Number. The OMB Control Number for this information collection is 0575-0147. Public reporting for this
collection of information is estimated to be approximately 5 minutes per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, completing and reviewing the collection of information. All responses to this
collection of information are voluntary. However, in order to obtain or retain a benefit, the information in this form is required under 7 CFR
1927-B, Real Estate Title Clearance and Loan Closing. Rural Development has no plans to publish information collected under the provisions of
this program. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden to: Information Collection Clearance Officer, Rural Development Innovation Center, Regulations Management Division at
[email protected]

Page 1 of 3
Close

Save

Submit

Close

Save

Submit

3) That the Government may, at its option, cure any monetary default by paying the amount of the Mortgagor's
delinquent payments to the Mortgage, or pay the obligation in full and the Mortgagee will assign the lien to the
Government;
4) That to the extent the Security Instrument secures future advances which have priority over the Government's
security instrument, no advances for purposes other than taxes, insurance or payments on other prior liens will be made
under any future advance feature of the Mortgagee's security Instrument without the written consent of the
Government;
5) That should the Mortgagee pursue foreclosure by advertisement (non-judicial foreclosure) of the Security
Instrument, the Mortgagee will give the Government not less than
days prior to written notice by Certified Mail
at the address(es) set out above of the date, time, and place of the foreclosure sales;
6) That the Closing Agent/Attorney will record this Agreement and legal description with the Security Instrument in
the appropriate Real Estate Mortgage Records;
(The following items do not apply to Single Family Housing)
7) That should the Government commence liquidation proceedings and thereafter acquire the real estate covered by the
Security Instrument, the Mortgagee will not declare the Security Instrument to be in non-monetary default;.
8) That this Agreement included consent to the Government for making (or transferring) future loans and taking (or
retaining) a related mortgage not withstanding any provision of the Mortgage which prohibits a loan or mortgage (or
transfer) without Mortgagee's consent; and
9) That should the Government obtain title to the property either by foreclosure or voluntary conveyance, Mortgagee will
grant consent so the Government may transfer the property subject to the prior lien notwithstanding any prohibition in
the Mortgagee's security instrument to the contrary.

Page 2 of 3

Form RD 1927-8

Close

Save

Submit

Close

Save

Submit

IN WITNESS WHEREOF, Mortgagee has executed this Agreement with the Government this
day of

, 20

.
(Seal)

(Mortgagee)

(Seal)

(Mortgagee)
IF MORTGAGEE IS A CORPORATION:
(Corporate Seal)

(Name of Corporation - Mortgagee)
By
(Duly Authorized Officer)

(Title)
ACKNOWLEDGMENT
(Address)
(Contact Person - Please Print)

(Telephone Number)
STATE OF
ss;

COUNTY OF

ACKNOWLEDGMENT

On this

day of

,

, before me, the subscriber, a

, in and for the above county and state,
appeared

, known to me to be

, the person

who executed the foregoing instrument, and he/she acknowledged to me that he/she executed the same for the uses
and the purposes mentioned in it.
IN WITNESS WHEREOF, I have set my hand and seal at
the day and year listed above.

(Signature)

[SEAL]
My commission expires

Form RD 1927-8

Close

Page 3 of 3

Save

Submit