24 C.F.R. § 207.255 Defaults.
Title 24 - Housing and Urban Development
(a) The following shall be considered a default under the terms of a mortgage insured under this subpart: (1) Failure of the mortgagor to make any payment due under the mortgage; or (2) Failure to perform any other covenant under the provisions of the mortgage, if the mortgagee, because of such failure, has accelerated the debt. (b) In the case of an operating loss loan, the failure of the mortgagor to make any payment due under such loan or under the original mortgage shall be considered a default under both the loan and original mortgage. (c) If such defaults as defined in paragraphs (a) and (b) of this section continue for a period of 30 days the mortgagee shall be entitled to receive the benefits of the insurance hereinafter provided. (d) For the purposes of this section the date of default shall be considered as: (1) The date of the first uncorrected failure to perform a covenant or obligation; or (2) The date of the first failure to make a monthly payment which subsequent payments by the mortgagor are insufficient to cover when applied to the overdue monthly payments in the order in which they became due.
Title 24: Housing and Urban Development
PART 207—MULTIFAMILY HOUSING MORTGAGE INSURANCE
Subpart B—Contract Rights and Obligations
Rights and Duties of Mortgagee Under the Contract of Insurance
§ 207.255 Defaults.
