How may excess proceeds from a Relief Refinance Mortgage transaction be used?
After proceeds are applied as required by the Guide, the mortgage amount may be reduced or the excess amount must be applied as a principal curtailment to the Relief Refinance Mortgage at closing and must be clearly reflected on the HUD-1 form or other equivalent closing statement. Under no circumstances may cash disbursed to the borrower exceed $250.
Related Questions
- Since the proceeds received from the sale of excess parcels will be used to partially fund the LATIP, will the Department attempt to obtain a high sales price?
- When paying off the existing mortgage with proceeds from the Relief Refinance Mortgage, can the UPB be rounded up or down to the nearest thousand?
- How do I document when excess proceeds from a refinance transaction are applied as a principal curtailment at closing?
