24 CFR 206.32 - No outstanding unpaid obligations.
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In order for a mortgage to be eligible under this part, a mortgagor must establish to the satisfaction of the mortgagee that:
(a) After the initial payment of loan proceeds under § 206.25(a), there will be no outstanding or unpaid obligations incurred by the mortgagor in connection with the mortgage transaction, except for repairs to the property required under § 206.47 and mortgage servicing charges permitted under § 206.207(b); and
(b) The initial payment will not be used for any payment to or on behalf of an estate planning service firm.
[64 FR 2988, Jan. 19, 1999]
Title 24 published on 2014-04-01.
No entries appear in the Federal Register after this date, for 24 CFR Part 206.