4335.2 REV.

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CHAPTER 4 - SERVICING THE DELINQUENT MORTGAGE

(Forbearance Agreements and Payment Plans)

4-1. POLICY. To the extent possible, forbearance is the primary tool

utilized to avoid acquisition. The objective is to help the

mortgagor achieve debt-free homeownership.

Field offices must make every effort to bring mortgages current by

developing forbearance agreements and to take other actions which

also minimize losses to HUD.

4-2. FORBEARANCE AGREEMENTS.

A. Requirement. All delinquent mortgages not in foreclosure,

bankruptcy or inactive status must be placed under a forbearance

agreement - which temporarily supercedes, but does not replace,

the mortgage instrument. Field offices are responsible for

developing and entering into agreements with mortgagors.

B. Format.

1\) Field offices must use the forbearance agreements in Exhibits

4-1, 4-2, and 4-3. These agreements encompass the standard

provisions described below.

2\) Changes to the provisions may only be made with specific

Headquarters approval. Only additions, such as an agreement

to pay more than required under the 35 percent rule, may be

inserted without Headquarters approval.

C. Documentation. All agreements lasting more than 60 days must be

in writing so that:

1\) A record of the terms and conditions is established;

2\) Mortgagors will know their specific rights and

responsibilities;

3\) Field offices have documentation to support their servicing

efforts for review or if foreclosure becomes necessary; and,

4\) The agreement must be entered into the SFMNS.

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4-1 9/86

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4335.2 REV.

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D. Required provisions. All agreements must have certain standard

provisions tailored to the individual mortgagor\'s case. These are:

1\) Duration. Agreements must be for no more than 12 months. They

should be shorter if:

\-- payments are suspended,

\-- less time is needed to cure the delinquency,

\-- you know the mortgagor\'s financial circumstances will change

in less than a year.

2\) Payment amount. Agreements must specify the required payment.

(For details, see paragraph 4-3, Payment Plans.)

3\) Payment due date. Agreements must state that payments are due

the first of the month and specify the beginning and end dates

of the agreement. Note: The due date of the first payment

should be the first of the month after HUD issues the

agreement.

4\) Hazard insurance. Agreements must specify the minimum amount

the mortgagor must carry. (See Chapter 3 for these

requirements.)

5\) Property tax escrow. All agreements must tell the mortgagor

that portions of the monthly payment will be set aside to pay

taxes and what action will be taken if the amount of tax

changes.

NOTE: The mortgagor should be informed that if sufficient funds

are not available in the escrow account at the time taxes are

due HUD will advance funds to pay the taxes and charge interest,

at the note rate, on those advances.

6\) Termination. All agreements must include the conditions and

results of termination.

7\) Status of original Note and Mortgage. All agreements must

clearly state that the original note and mortgage remain in full

force except where the agreement temporarily modifies them.

E. SFMNS. Field offices must put the forbearance agreement terms into

The SFMNS in time for automatic billing of the first payment. (See

the SFMNS User\'s Guide for instructions.)

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9/86 4-2

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4335.2 REV.

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F. Monitoring. Field offices must monitor mortgagor performance

under the agreements and, as necessary, review and restructure

agreements, collect payments, or recommend foreclosure. (These

activities are covered in this Chapter and Chapter 5.) The

SFMNS\' MONT Screen should be used to remind staff in advance of

necessary review schedules.

G. Notification to Mortgagor. At the beginning of the initial

36-month period after the date of the assignment acceptance

letter, the field office must advise the mortgagor of the

following:

\"During the next 36 months HUD will calculate your payment plan

for the maximum payment based on your ability to pay. As a

result, you may be asked to make regular or increased payments or

your payments may be reduced or even suspended. Regardless of

which type of payments you have over the next 36-months, you must

begin to pay at least the full regular monthly payment due under

your mortgage (or deed of trust) on the first day of the 37th

month after notification of assignment acceptance. If you are

financially able at any time your mortgage is with HUD, you will

also be required to make payments to eliminate any outstanding

delinquency.\"

4-3. PAYMENT PLANS.

A. Policy. To obtain the maximum feasible payment to reduce the

delinqency as soon as possible and help the mortgagor achieve

debt-free homeownership. Simultaneously, the payment plan must

be commensurate with the mortgagor\'s ability to pay.

\-- Escrow shortages must be considered in developing the plan

and, if possible, the mortgagor must be required to reduce

them.

Where a \"technical\" delinquency has been created, solely due

to escrow advances, the mortgagor\'s bill will show him or her

delinquent until the advances are expunged.

If the mortgagor cannot eliminate the delinquency advance

through a lump-sum payment, or the time necessary to expunge

it in a reasonable fashion extends beyond the next escrow

analysis, then a simpler self-explanatory payment plan shall

be used (see Exhibit 4-3).

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4335.2 REV.

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B. Types of Payment Plans.

1\) Increased. Requires the regular payment due under the mortgage

plus an amount toward the delinquency. It may be used in an

assumption that does not bring the account current. It may be

used for any delinquent account where the mortgagor\'s monthly

income, less expenses (calculated using Form HUD-92208), yields

an amount available for mortgage application which exceeds that

required to make the regular mortgage payment. A mortgagor may

voluntarily agree, as part of the written plan, to make

increased payments.

2\) Regular. Use when it is determined that the mortgagor is

financially unable to reduce the delinquency but has enough

income to meet obligations. Requires the regular payment due

under the mortgage\--or for assisted mortgages, the mortgagor\'s

\"share\". It also represents the \"minimum\" amount required after

the initial 36 months following assignment acceptance has

expired.

3\) Reduced.

a\. Use when the mortgagor is undergoing temporary hardship

beyond the mortgagor\'s control and is unable to pay the

regular or increased monthly payment.

b\. Maximum period. 36 consecutive months. The SFMNS loan

monitoring screen must be used to monitor this period, which

is measured from:

\-- date of the assignment acceptance letter for a mortgage

assigned in a delinquent status.

\-- For PMMs, or automatically assigned mortgages, 36 months

from initial default.

c\. Maximum Payment. During the 36 month period, where it is

determined that the mortgagor cannot meet the regular or

increased payment, the monthly payment demanded of the

mortgagor must not cause the mortgagor\'s total housing

expense to exceed 35 percent of net effective income.

However, if a mortgagor can, and is willing to, pay more

than the 35 percent the field office may incorporate a

larger amount in the forbearance agreement. (See 4-2, B,2))

Such an amendment must be fully documented.

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9/86 4-4

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4335.2 REV.

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Apply the 35 percent rule as follows:

1\. Use it only if the monthly income available toward the

mortgage (on Form HUD-92208) is less than the full

mortgage payment.

2\. Monthly net effective income is the gross monthly income

less monthly city, State and Federal income and social

security taxes.

3\. Total monthly housing expense is the monthly mortgage

payment plus the mortgagor\'s other monthly housing

expense: housing maintenance, utility and hazard

insurance expense,

4\. Maximum monthly reduced payment under 35 percent rule

is:

35% of net effective income, minus:

\-- Monthly utility cost

\-- Monthly hazard insurance premium, if any,

\-- Monthly home maintenance cost

4\) Suspended. (No monthly payment) Use under unusual

circumstances only when analysis on Form HUD-92208 and

application of 35-percent rule dictate it:

a\. only during first 36 months after assignment acceptance

and,

b\. for no more than a 6-month term during which time

financial circumstances must be reviewed so that

payments can be adjusted promptly.

C. Minimum Payments.

1\) The 37th month after the assignment acceptance letter, the

mortgagor must begin paying at least the full monthly payment

due under the mortgage (principal, interest, current escrow

requirements and service charge).

2\) If the mortgage is not current, the mortgagor must sign a

forbearance agreement.

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4335.2 REV.

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a\. Terms. The agreement must require at least full monthly

payments due under the mortgage and have a term of no

more than 12 months.

b\. Review. The mortgagor\'s financial circumstances must be

reevaluated near the end of the term of each agreement

before a new one is executed. If the evaluation shows

that the mortgagor can cure the delinquency and make the

full monthly payment, a higher payment must be required.

3\) If the mortgagor is financially capable, the delinquency must

be cured on or before the maturity date of the mortgage.

Otherwise, the mortgage may be modified (2-5c.) or extended

so that the delinquency may be paid over a period not to

exceed 120 months (10 years) beyond maturity date. \"Mortgage

extension\" is an informal process of failing to satisfy the

mortgage at term. In \"extending\" the mortgage, the field

office must insure that the priority of the mortgage lien is

not affected. Consult Regional/Chief Counsel, if necessary.

D. Lump Sum.

1\) Such payments to reduce delinquency may be accepted any time;

but they generally occur with the first forbearance

agreement. (A format for an agreement with a lump sum payment

is in Exhibit 4-2.)

2\) The field office should request a lump sum payment from the

mortgagor who:

a\. has the cash available, and

b\. would still be able to make subsequent monthly payments.

4-4. FORBEARANCE RELIEF FOR SECTION 235 SUBSIDIZED MORTGAGES.

A. For mortgagors still eligible to receive assistance, family

income must be recertified and verified at least annually. The

same policies and procedures for private mortgagees, in Chapter

10 of Handbook 4330.1, apply.

B. Try to coordinate the anniversary date of the assistance payments

contract with the proposed payment plan.

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9/86 4-6

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4335.2 REV.

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C. Remember the following:

1\) Family income used to determine section 235 eligibility is

different from what determines the mortgagor\'s ability to

pay.

a\. Section 235 eligibility income. The income of all

persons related by blood marriage or operation of law

living in the household, exclusive of earnings of minors.

b\. Income for payment plans is limited to the responsible

mortgagor(s). Income that can\'t be relied on, can\'t be

included; neither can incomes of persons not obligated

under the mortgage.

2\) Section 235 assistance computation takes precedence. The

\"mortgagor\'s share\" shall be viewed as the \"full mortgage

payment\" for purposes of developing the payment plan.

3\) For mortgages insured after January 1976, recertifications of

family income and composition are required annually and when

the servicer becomes aware that the monthly family income has

risen at least \$50. For cases insured before that date the

assistance payment will not change between annual

recertifications unless income goes down and the mortgagor

brings it to the field office\'s attention.

4-5. COLLECTION PROCEDURES.

A. General. Deal with a delinquency the first month a payment is

missed. A partial payment or a break in payment pattern are the

signs of problems. Keep close records and monitor the payment

plan. Special telephone efforts, letters and field visits are

essential during the early stages of default.

Objectively determine the cause of default and arrive at a

payment plan that will eliminate the default. When warranted,

initiate foreclosure.

B. Early Contact and Follow-up.

1\) Mortgagors under a forbearance agreement require individual

attention and close monitoring. Early delinquency notices

followed by telephone calls will prompt most mortgagors to

pay or explain the delay. There is no substitute for

consistent early contact and follow-up. Do not rely on SFMNS

generated delinquency notices as your sole collection tool.

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4335.2 REV.

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2\) The SFMNS Delinquent Status Report (Report No. 507) provides

delinquency status on accounts in 30, 60, 90, and 90+ day

categories. These reports must be used to determine which

mortgagors have delinquent payments and need servicing activity.

(See the SFMNS User\'s Guide concerning these reports.)

C. Common Causes of Default Under Forbearance Plans. Identifying the

reason for non-payment will help you develop a reasonable repayment

plan. Even the most carefully planned forbearance plan can be

rendered unworkable by unexpected events. In such cases prompt

restructuring of the plan is called for. Common causes for default

include:

1\) Unexpected major repairs or restoration due to damage or

deterioration of a major structural component.

2\) Temporary loss of income due to such things as unemployment,

illness, death in family and divorce which occurred after the

forbearance plan was established.

D. Required Servicing During Month 1 of a Delinquency (day 1 through

31). SFMNS automatically produces a delinquency letter the 17th day

of the month if a payment is not posted to the account by the 16th.

A late charge is also assessed. But, this should not limit you from

initiating action of your own.

E. Required Servicing During Month 2 of a Delinquency (day 32 through

61). Beginning the 32nd day of a delinquency, when two payments are

past due, the Field Office must step-up servicing activities. These

activities must be directed toward collection of the delinquent

payments or assessment of the cause(s) of the delinquency. The

effectiveness of the SFMNS\'s automatically generated delinquency

notice loses its effect with each successive month and personal

attention is necessary.

Directly contact the mortgagor, determine the cause of default, and,

if appropriate, restructure the payment plan and refer the mortgagor

to counseling or initiate foreclosure when warranted. Foreclosure

is warranted when the property has been abandoned or the mortgagor

has expressed a clear refusal to cooperate further. All actions

should be thoroughly documented.

F. Required Servicing During Month 3 of a Delinquency (day 62 through

90).

1\) On the 62nd day of delinquency 3 payments are past due. The

field office must review the payment plan and servicing actions

taken and decide either to restructure a payment plan or

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9/86 4-8

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4335.2 REV.

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foreclose. Providing all required servicing attempts have been

completed with no positive result, and a complete analysis has

been made, a decision to foreclose must be made before the 4th

payment is missed (92nd day) (see paragraph 4-6 concerning

review of payment plans). All actions must be thoroughly

documented.

2\) You cannot foreclose until the month 2 servicing is completed,

unless the property has been abandoned.

3\) To recommend foreclosure, follow Chapter 5.

NOTE: Partial payments may advance the paid-to date on the

Forbearance Screen (FORB), but three payments can be

measured from the initial forbearance delinquency.

However, partial payments may also be indicative of a

concern, rather than total disregard, for the

obligation. In this latter case restructuring of the

agreement may be warranted.

G. Collection Techniques. The following summarizes basic techniques,

which should be tailored to the individual case.

1\) Telephone Contact. This is one of the most effective and

practical collection tools before sending a collection letter.

The telephone calls are not only more personal, but faster and

cheaper than automatically generated delinquency letters.

They demand immediate attention and cannot be thrown away or

deferred. The staff person can vary his/her collection appeal

and adapt his/her tone and approach to the mortgagor\'s response

and attitude. Since mortgagors normally work the same hours

that you do, and sometimes cannot be reached at their work

location, consideration may be given to varying the work

schedule to allow for evening calls. Calls should be limited

to \"reasonable hours\", usually not later than 9:30 p.m.

a\. Always keep in mind that the purpose of the call is to

determine: why the payment has not been made; and when it

will be made.

b\. Plan and organize the call; review the mortgagor\'s record.

c\. Have the pertinent information on hand during the

conversation. Use a telephone near a SFMNS terminal so

you can access the account.

d\. Talk only with the mortgagor. You must never discuss the

account with anyone else unless the mortgagor authorizes

it in writing.

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4335.2 REV.

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e\. Identify yourself, then confine the conversation to the

purpose of the call.

f\. Always maintain control over the telephone conversation.

Do not argue with the mortgagor.

g\. End conversation when a firm commitment has been made.

h\. Document the servicing file and set a follow-up date. The

loan monitoring screen of the SFMNS can be used to monitor

follow-ups.

i\. Follow-up is essential. As soon as you are aware of a

missed payment date, contact the mortgagor.

NOTE: Each servicer should have, and use, the Guide for

Telephone Collections, a HUD publication, GPO 904

082\. It tells how to gather facts and pursue evasive

responses.

2\) Face-to-face contact. Personal contacts are also effective.

a\. If face-to-face meeting are feasible, they must be scheduled

at the mutual convenience of the mortgagor and the field

staff. Unless either pre-arranged, or the mortgagor is

encountered, and spoken with, during the course of a

property inspection, such inspections are not considered as

attempts at face-to-face meetings.

b\. Field office staff are not required to attend meetings

outside the field office; but if they do, they cannot accept

a cash payment on the account at the meeting. Meetings may

be held at the mortgagor\'s home, counseling agency,

mortgagee\'s office or even another field office which

may be closer to a mortgagor\'s residence. Out of office

meetings may be necessitated by travel, illness or job

constraints, etc.

c\. Be fully prepared for an objective and complete discussion

of the case. Concentrate on fact-finding, the mortgagor\'s

obligations under the mortgage and the forbearance

agreement, problems affecting ability to meet these

obligations, and the results of not meeting them.

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9/86 4-10

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4335.2 REV.

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d\. In planning and carrying out a meeting see that:

1\. Mortgagor agrees to specific time and place.

2\. Tell the mortgagor in advance what specific information

you need.

3\. Assure privacy, confidentiality; and freedom from

interruption.

4\. Maintain a friendly but businesslike manner and an

atmosphere of understanding and cooperation. Refrain

from arguments.

5\. Emphasize the seriousness of the delinquency and the

possibility of eventual foreclosure.

6\. If the forbearance agreement cannot be reinstated

determine the cause of default and obtain the facts to

assist in recommending continuation of the present

payment plan, a new plan, or foreclosure.

7\. Your decisions based on the meeting must:

\-- be in writing and approved by your supervisor.

\-- state the payment terms.

\-- be sent to the mortgagor.

3\) Letters. Collection letters are most effective when they are

not the same repeated form letter, but more personal. Letters

are also valuable to confirm agreements made during telephone

or personal contacts.

\-- Never bring up foreclosure unless you fully intend to

recommend it.

4\) Fact Finding. Whether by telephone, letter or in person,

questions and demands should be phrased to elicit a positive

answer. Always ask open-ended questions such as:

Ones that begin with the words:

a\. Who, What, Which, When, How, and Why . . . ?

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4-11 9/86

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4335.2 REV.

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b\. What caused you to miss the payment?

c\. When will you make a payment?

5\) Documentation. All contacts with the mortgagor must be well

documented on a case history sheet for the servicing file.

Use the Assignment Request Case History Sheet, Form

HUD-92210, (EXHIBIT 4-4), or a similar sheet. The servicing

Card, Form HUD-92202, is useful for making quick notes, but

lacks the space for detailed information. Cryptic or

shorthand notes at the bottom of copies of correspondence may

not suffice as thorough documentation.

6\) Data Collection and Evaluation. Three HUD forms help in

determining the mortgagor\'s ability pay:

a\. Request for Financial Information, Form HUD-92068F.

b\. Request for Verification of Employment, Form HUD-92004-g.

c\. Analysis of Mortgagor\'s Income and Expense, Form

HUD-92208.

In addition, for Section 235 cases, the data derived from the

Recertification of Income and Family Composition procedure

will help in that determination.

7\) In addition to the collection procedures outlined above, HUD

may also use several additional techniques provided under OMB

Circular A-129 (Managing Federal Credit Programs). These

activities will be initiated by Headquarters:

a\. Salary offset for Federal employees.

b\. Income tax refund offset.

4-6. REVIEW AND RESTRUCTURE OF PAYMENT PLANS.

A. Specific Review Periods. Once a payment plan has been developed,

the mortgage account must be monitored as follows.

1\) When an Account is in Default.

a\. No foreclosure recommendation shall be made, except when

the property is vacant, until the payment plan has been

reviewed and all servicing/collection efforts required

in paragraph 4-5 have been completed.

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9/86 4-12

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4335.2 REV.

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b\. As part of this effort ask the mortgagor to complete and

return Form HUD-92068F within 14 days. Failure to return

the Form HUD-92068F is not, of itself, sufficient ground

to recommend foreclosure. Include a letter advising the

mortgagor that:

\-- failure to return the form may result in a continuation

of the current payment or the payment required under

the mortgage, whichever is greater.

\-- foreclosure could result from the delinquency.

c\. You must recommend foreclosure when:

\-- reanalysis shows the existing plan was realistic but

the mortgagor refused to make payments,

\-- or 37 months have expired and the attempted minimum

payment plan fails.

d\. If the plan was not realistic, or if changed circumstances

warrant, it must be restructured.

2\) Before the Plan Expires.

a\. Each month the field office receives Loan Monitoring Report

No. 246, listing the forbearance agreements expiring in

60 days.

b\. Where an agreement is due to expire, have those mortgagors

submit financial information (Form HUD-92068F) within 14

days. Advise them that failure to return the form will

result in a continuation of the current payment or minimum

payment, whichever is greater.

1\. If the form is received, use it to re-evaluate and, if

necessary, revise the payment plan.

2\. If it is not:

\-- check with the mortgagor to see if failure to return

the form was an oversight; if it was, mail another

form.

\-- otherwise, update the SFMNS for the higher amount to

become effective immediately and send the proposed

agreement for mortgagor\'s signature.

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4-13 9/86

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4335.2 REV.

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c\. If the mortgagor doesn\'t return the agreement signed,

proceed to service the account under the terms of that

proposed agreement.

B. Analyzing Income and Expenses.

1\) You must use the mortgagor\'s Forms HUD-92068F and HUD-92208.

(Samples are in Exhibits 4-5 and 4-6.) If a mortgagor does

not submit a current Form HUD-92068F, place the account

under the full note payment or the previous payment plan

amount, whichever is greater.

2\) In making the analysis, remember that HUD accepts assignment

of a delinquent mortgage solely to help a mortgagor to avoid

foreclosure. What may be perceived as extravagant may have

been affordable before the mortgagor encountered financial

difficulties. However, the assignment program should not

subsidize a mortgagor\'s continued extravagant lifestyle by

accepting increased expenditures for new non-essential items

while making reduced or suspended mortgage payments.

Financial counseling for the mortgagor is essential.

3\) Disallow new or increased installment debts for

non-essential items during the forbearance period. These

are considered to be expenses not directly essential to the

mortgagor\'s health, employment, or modest transportation

needs.

4\) Do not arbitrarily change amounts of expenses listed by

mortgagors; consider each case on its own merits. If

changes are made the mortgagor should be contacted and the

result documented.

5\) Expenses for utility costs can either be averaged over the

year or seasonally adjusted to allow variable payments.

6\) Standardized tables for food, living expenses, utilities, or

home maintenance are often available from State agencies or

HUD\'s area economists. However, such tables must be used

merely as guides in analyzing the mortgagor\'s expenses, not

used to force a subsistence lifestyle upon the family.

4-7. RELIEF FOR AUTOMATIC ASSIGNED MORTGAGES, AND OWNER OCCUPIED PMMs.

A. Occasionally, short-term difficulties cause an otherwise

dependable mortgagor to be delinquent. Often, HUD\'s best

interest is to accept partial payment rather than to foreclose.

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9/86 4-14

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4335.2 REV.

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B. Field offices may accept partial payment, but must first document

the following:

1\) The mortgagor has not, previously, been provided relief by

HUD,

2\) Cause of delinquency must have been beyond the mortgagor\'s

control,

3\) There must be a reasonable prospect that the mortgage and

delinquency can be paid by the maturity date, extended by up

to 10 years if necessary.

C. No assistance can be provided for more than 36 months.

4-8. PROVIDING COUNSELING.

A. Field offices must offer counseling through a HUD-approved

housing counseling agency to every mortgagor accepted by HUD for

assignment. Do not initiate the offer to those who are under an

approved bankruptcy plan; however, you may suggest counseling

through the trustee or mortgagor\'s attorney. Field offices must

tell mortgagors about available counseling in:

1\) The assignment acceptance letter

2\) Any written request for financial information for use in

establishing or revising a forbearance agreement.

NOTE: While it is not required that mortgagors with Prams be

referred to counseling, it is strongly advised, if

such mortgagors become delinquent.

B. When the services of a HUD-approved counseling agency is

available, field offices will refer mortgagors to such agencies

for service. Upon request for counseling, refer the mortgagor to

the agency, taking into consideration:

1\) that travel time from home or work to the counseling agency

should not exceed 1 hour (in urban areas) or 2 hours (in

rural areas), or

2\) whether public or private transportation is available.

C. Homeownership Counseling Services By Counseling Agencies.

Services must include those required by the Housing Counseling

Handbook 7610.1 Rev., and if applicable, the grant document.

D. Length of Counseling. It should be available to assigned

mortgagors during the entire term of the mortgage, including any

period of extension.

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4-15 9/86

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4335.2 REV.

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4-9. SUPERVISORY RESPONSIBILITIES. This chapter has been designed to

define HUD\'s standards for servicing the delinquent mortgage. What

should be clear is that while servicing and collection activities go

hand-in-hand they are different. HUD does have a right to pursue

payment of the indebtedness, but the zealousness of that pursuit must

be tempered with reason and based on thorough information gathering

and documentation, as well as the exercise judgment.

The following excerpt from the Amended Stipulation, dated August 2,

1979, in the Farrell case is most pertinent;

\"7) HUD shall review and, as appropriate, restructure payment plans

of assigned mortgages (emphasis added) to ensure that they are

reasonable and comport with 24 C.F.R. 203.650-662 and Handbook

4191.2 under the following circumstances:

a\. Before any action has been taken by reason of mortgagor

default;

b\. When the terms of such a plan expire;

c\. When a plan is in default for three months or longer;

d\. When the terms of an existing plan extend more than six (6)

months from the Order date;

e\. When a mortgagor so requests for good cause.\" (emphasis

added)

While the term of that stipulation has expired, HUD desires that

equivalent standards apply.

Supervisors may be held responsible for the acts of their

subordinates which do not conform to the letter and spirit of this

agreement and Handbook.

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9/86 4-16

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4335.2 REV.

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RESERVED

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4-17 9/86

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4335.2 REV.

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RESERVED

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9/86 4-18

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4335.2 REV.

Exhibit 4-1

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SAMPLE PAYMENT PLAN

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4-19 9/86

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4335.2 REV.

Exhibit 4-2

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9/86 4-20

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4335.2 REV.

Exhibit 4-3

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4-21 9/86

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4335.2 REV.

Exhibit 4-4

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9/86 4-22

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4335.2 REV.

Exhibit 4-5.1

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4-23 9/86

HUD-Wash., D.C.

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4335.2 REV.

Exhibit 4-5.2

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9/86 4-24

HUD-Wash., D.C.

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4335.2 REV.

Exhibit 4-6

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ANALYSIS OF MORTGAGOR\'S INCOME AND EXPENSES

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4-25 9/86