What happens if the homeowner violates the loan terms?
If the homeowner violates the loan terms, the loan comes due. Reasons for default may include: • Default by the homebuyer under the first loan. • Default by the homeowner under the second loan note, deed of trust or resale agreement. • If the property ceases to be the primary residence of the homeowner. • In the event that the residence is rented or leased for more than two months out of a 12-month period and the MHDC has not consented to the leasing. • In the event that another deed of trust is recorded other than the first and second deeds of trust.
