Code of Massachusetts Regulations
761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY
Title 761 CMR 22.00 - Servicer's Guide
LOAN SERVICING
Section 22.18 - Action During Foreclosure

Servicer shall take such action as is required during foreclosure to protect the property. Regular inspections shall be made with special emphasis on properties that have been vacated. Servicer shall, when appropriate, report to MHMFA the progress of foreclosure, including any unusual expenses incurred, the results of any inspection and any protective action taken. Servicer shall also report immediately to MHMFA the setting of a sale date, the suspension of foreclosure, and the holding of a sale.

Servicer shall retain Borrower's Escrow Payments, and tax receipts, and obtain bills for escrow expenses. If the balances in Borrower's escrow account are insufficient to pay escrow expenses as they become due during fore closure, Servicer shall pay such escrow expenses when and to the extent necessary to protect MHMFA's interest as well as for the costs of foreclosure and protective action. Such advances will be repaid by MHMFA and Seller, pro-rata, upon receipt of proceeds from the liquidation of the Mortgage Loan (See 761 CMR 22.23 -- Escrow Payments). Servicer shall be responsible for satisfying all requirements and promptly forwarding all required reports and other documents, to the FHA, VA, the private mortgage insurer or MHMFA to assure maximum benefit of all such guarantees or insurance

Seller and MHMFA agree to reimburse on a pro-rata basis Servicer for its reasonable out-of-pocket expenses incurred, including attorneys' fees, and for any advances by Servicer authorized by MHMFA in prosecution of foreclosure proceedings, and for protection of the mortgaged property, at the time of foreclosure out of the proceeds of the liquidation of the Mortgage Loan. If MHMFA shall so direct, Servicer shall relinquish servicing of a Mortgage Loan in default, and resume servicing when requested by MHMFA.