Michigan Instruction HB-1-3550

Appendix 7­­­­­­­­­­­­­­

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AGREEMENT WITH PRIOR LIENHOLDER

UNITED STATES DEPARTMENT OF AGRICULTURE

Whereas
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ,
(hereinafter "Prior Lienholder"), and the United States of America,
acting through the Rural Housing Service, United States Department of
Agriculture, (hereinafter "RHS"), propose to participate as joint
lenders providing mortgage funds for the financing of single family home
purchases and/or construction-repair

in the State of Michigan. Prior Lienholder will hold the first mortgage
lien position and RHS the second mortgage lien position

Now Therefore, Prior Lienholder and RHS, for themselves, their
successors, and their assigns, and in consideration of the benefits
accruing to each of them from their joint lending activities, agree that
the following provisions shall apply to all jointly financed loans made
by them after the date of this Memorandum of Understanding:

1\. That the Prior Lienholder will not declare the Security Instrument
to be in default because of the Government form;

2\. Prior Lienholder shall not declare its Security Instrument in
default and the indebtedness secured thereby will not be accelerated
unless written prior notice has been provided to RHS at the following
address: [Rural Development, State Director, 3001 Coolidge Rd., Suite
200, East Lansing, MI 48823]{.underline}

Said notice shall be delivered to the Government by certified mail not
less than 30 days prior to the intended action.

3\. RHS may, at its option, cure any monetary default by paying the
amount of the Prior Lienholder's delinquent payments to the Prior
Lienholder or by paying the obligations in full. If RHS should pay the
obligation in full, the Prior Lienholder shall assign the Security
Instrument to RHS.

4\. To the extent the Prior Lienholders Security Instrument secures
future advances which have priority over the RHS mortgage lien, no
advances for purposes other than taxes, insurance, or payments on prior
liens will be made under any future advance provision of the Security
Instrument without the written consent of the Government.

5\. That should the Prior Lienholder pursue foreclosure by advertisement
(nonjudicial foreclosure) of the Security Instrument, the Prior
Lienholder shall give the Government thirty (30) days prior written
notice by certified mail at the address set out in number one above of
the date, time, and place of the foreclosure sale.

6\. That the closing Agent/Attorney will record this Agreement and legal
description with the Security Instrument in the appropriate Real Estate
Mortgage Records;

.

In Witness whereof, the Prior Lienholder has executed this Agreement
With Prior Lienholder this \_\_\_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_\_\_, 20\_\_\_.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (Seal)

(Mortgagee)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (Seal)

(Mortgagee)

IF MORTGAGEE IS A CORPORATION:
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(Corporate Seal) (Name of Corporation -- Mortgagee)

BY \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Duly Authorized Officer)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address)

ACKNOWLEDGEMENT \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Contact Person -- Please Print)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Telephone Number)

Signed, sealed and delivered in the presence of:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\* (Witness)

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\* (Witness)

**ACKNOWLEDGMENT**

STATE OF MICHIGAN )

)

COUNTY OF \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_)

On this \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_\_\_, 20\_\_\_, before me, the

Undersigned Notary Public personally appeared
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known to me to be the person(s) described in and who executed the within
and foregoing instrument, and being by me duly sworn, he/she
acknowledged to me that as his/her free and voluntary act and deed,
he/she executed said instrument, for the uses and purposes therein set
forth.

**IN WITNESS WHEREOF, I hereunto set my hand and official seal.**

(SEAL)
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\* Notary Public

My commission expires \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_