California Code of Regulations › Title 25 - Housing and Community Development › Division 1 - Housing and Community Development › Chapter 7 - Department of Housing and Community Development Programs › Subchapter 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 3 - Deferred Payment Loan Requirements › Section 8051 - Sales, Transfers, Encumbrances, and Assumptions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Deferred payment loans shall be due and
					 repaid upon sale, conveyance, or transfer of the property or any interest
					 therein, except in the case of the transfer of the property to a borrower's
					 spouse as a consequence of marriage, dissolution of marriage, death, or unless
					 assumed by an eligible borrower.
(b) The borrower shall not encumber, pledge,
					 or hypothecate the property or any interest therein or portion thereof with
					 liens which are recorded in a senior position to that of the deferred payment
					 loan without the prior written approval of the department. The borrower shall
					 cure any unapproved lien, charge, or assessment against the property as
					 required by the department pursuant to section 8052(b). The department may
					 subordinate the deferred payment loan and permit refinancing of existing liens
					 or additional financing secured by the property to the extent that such
					 financing does not exceed the loan-to-value ratio pursuant to section 8050(a)
					 and (c).
(c) When a deferred
					 payment loan is repaid, the loan agreement required pursuant to section 8056(b)
					 shall be terminated, the deed of trust shall be reconveyed, and any other
					 security documents shall be terminated.
(d) With prior approval of the department,
					 the deferred payment loan may be assumed by a borrower who meets the
					 eligibility requirements and who shall be subject to the requirements of this
					 subchapter.
1. New
						section filed 11-30-89 as an emergency; operative 11-30-89 (Register 89, No.
						49). A Certificate of Compliance must be transmitted to OAL within 120 days or
						emergency language will be repealed by operation of law on
						3-30-90.
2. New section refiled 3-26-90 as an emergency; operative
						3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted
						to OAL within 120 days or emergency language will be repealed by operation of
						law on 7-30-90.
3. New section filed 7-26-90 as an emergency;
						operative 7-26-90 (Register 90, No. 38). A Certificate of Compliance must be
						transmitted to OAL by 11-23-90 or emergency language will be repealed by
						operation of law on the following day.
4. Amendment of subsection
						(a) filed 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A
						Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency
						language will be repealed by operation of law on the following
						day.
5. New section refiled 11-16-90 as an emergency; operative
						11-16-90 (Register 90, No. 51). A Certificate of Compliance must be transmitted
						to OAL by 3-18-91 or emergency language will be repealed by operation of law on
						the following day.
6. Readoption of 8-27-90 order filed 12-21-90 as
						an emergency; operative 12-21-90 (Register 91, No. 7). A Certificate of
						Compliance must be transmitted to OAL by 4-22-91 or emergency language will be
						repealed by operation of law on the following day.
7. Certificate of
						Compliance as to 11-30-89 order, readopted and operative on 3-30-90, 7-26-90
						and 11-16-90, including amendment of subsections (a), (b), and (d) transmitted
						to OAL 11-30-90 and filed 12-31-90 (Register 91, No.
						7).
Note: Authority cited: Section 50668.5(g), Health and
						  Safety Code. Reference: Section 50662, Health and Safety
						  Code.