Section 4.10. Acceleration.

 

(1)   False statement by applicant. Whenever it is determined that an applicant has obtained any department loan through fraud, misrepresentation, or through concealment of a material fact, the mortgage note may be accelerated and full payment demanded.

(2)   Transfer of possession. The department or authorized lender may accelerate the mortgage note and require that the mortgage loan be paid in full when a mortgagor transfers physical possession of the mortgaged premises, without the lender's prior written consent. The mortgage shall provide for such acceleration.

(3)   Sale of property. Subject to the provisions of s. 45.36 (2) (a) and (b) , Stats., the department or authorized lender shall accelerate a mortgage note and require that the mortgage loan be paid in full when the mortgagor completes a sale of the housing accommodation mortgaged to the department.

(4)   Default. If a mortgagor is in default in loan repayments or has substantially breached mortgage covenants, the department may accelerate a secondary loan mortgage note and, with the department's consent, the authorized lender may accelerate a primary loan mortgage note.

History: Cr. Register, May, 2000, No. 533 , eff. 6-1-00.