FHA HOPE for Homeowners H4H           

 Extinguishment of Subordinate Liens

           All existing mortgage lien holders must waive all rights to collect existing debt.  To facilitate this agreement among lien holders, HUD may offer subordinate lien holders a share in future appreciation.  Consistent with requirements and standards adopted by the Board, HUD may also take such actions as may be necessary and appropriate to facilitate coordination and agreement between the holders of the existing senior mortgage and any existing subordinate mortgages, taking into consideration the subordinate lien status of such subordinate mortgages.  Subordinate lien holders whose write off is less than $2,500 will not receive the opportunity to share in future appreciation. 

Qualifying existing subordinate mortgage lien holders may receive a share of HUD’s interest in future appreciation in exchange for full release of their lien(s). 

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