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§ 2702. —  Mortgages eligible for assistance.

[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC2702]

                       TITLE 12--BANKS AND BANKING
Sec. 2702. Mortgages eligible for assistance

    No assistance shall be extended with respect to any mortgage under 
this chapter unless--
        (1) the holder of the mortgage has indicated to the mortgagor 
    its intention to foreclose;
        (2) the mortgagor and holder of the mortgage have indicated in 
    writing to the Secretary of Housing and Urban Development 
    (hereinafter referred to as the ``Secretary'') and to any agency or 
    department of the Federal Government responsible for the regulation 
    of the holder that circumstances (such as the volume of delinquent 
    loans in its portfolio) make it probable that there will be a 
    foreclosure and that the mortgagor is in need of emergency mortgage 
    relief as authorized by this chapter, except that such statement by 
    the holder of the mortgage may be waived by the Secretary if in his 
    judgment such waiver would further the purposes of this chapter;
        (3) payments under the mortgage have been delinquent for at 
    least three months;
        (4) the mortgagor has incurred a substantial reduction in income 
    as a result of involuntary unemployment or underemployment due to 
    adverse economic conditions and is financially unable to make full 
    mortgage payments;
        (5) there is a reasonable prospect that the mortgagor will be 
    able to make the adjustments necessary for a full resumption of 
    mortgage payments; and
        (6) the mortgaged property is the principal residence of the 

(Pub. L. 94-50, title I, Sec. 103, July 2, 1975, 89 Stat. 249.)

                  Section Referred to in Other Sections

    This section is referred to in sections 2703, 2705 of this title.