NPN and the Michigan Homeowner Assistance NonProfit Housing Corp?

[Bill B.]

Hi,

I'm in DD on a note in Michigan.  There is a second mortgage on the O&E held by the Michigan Homeowner Assistance NonProfit Housing Corporation Acting Through Michigan State Housing Development Authority

(Whew!!! what a pithy name.........GREAT for marketing.....)

This is a Future Advance Mortgage. Question 1: What is a "Future Advance Mortgage"?

The verbiage in this second mortgage makes it sound like it remains a lien on the property no matter what happens.  (And governments can make that happen......)

Has anyone dealt with a second mortgage like this in a NPN?

I appreciate everyone's time and effort. 

Thanks!!!

Bill

[Bill Gulley]

Super liens are established by stature or court order, not by agreement of a Trust, but the best way to know where you stand is by calling the  MI, housing development office, but I doubt it is.

The second appears to me to be held by a non-profit association, a requirement for bonding through the state finance/development office, the state backs the bonds used for the loan advanced but it doesn't have to hold the note, but they could. 

Housing development bonds generally are not super liens by the virtue of the mortgage, they hold the same position as if the mortgage were held by any lender. 

The foreclosure procedure appears to have been made some time ago, under federal law, any borrower must be given notice, regardless as to what may have been agreed, IMO.

If you have a NPN first, simply include the balance of the second, if you hold the second, better cross your fingers and pray, but I can't see you holding a housing development note either.

Call the development office, they should tell you how they view the lien and your position, it's best to clear the air than to speculate, but I wouldn't have an issue with that mortgage. Good luck :)