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court upon receipt of the executed document, This fully enforceable agreement,if executed,will <br /> retain the lien as secured and will keep the lien from being discharged as part of the Chapter 7 <br /> discharge. If the borrower has no legal counsel and has filed their bankruptcy petition "pro se", <br /> (on their own behalf) or with the assistance of a licensed paralegal, Servicer can communicate <br /> directly with the borrower, <br /> b. Upon default of borrower's remittance of payments during the bankruptcy, Servicer will notify <br /> the borrower's (debtor's) counsel and Chapter 7 Trustee advising of the default, but If filed pro <br /> se,then the debtor would be notified directly. -- <br /> c, Should the Chapter 7 Trustee determine that assets are available for distribution to creditors, <br /> Servicer will file a Proof of Claim on behalf of the Client <br /> 2. Chapter 13 Bankruptcy: <br /> a. upon receipt of notification from a court of law,debtor(borrower),or the Client,of a Chapter 13 <br /> bankruptcy for a debtor serviced by Servicer,Servlcer will notify the Client its Intention to file a <br /> Proof of Claim as well as supporting bankruptcy documentation,and will file with the appropriate <br /> court. Upon receipt of a returned filed Proof of Clairn from the court,Servicer will forward a copy <br /> of same to the Client and will begin monitoring post and pre-petition payments to borrower's <br /> loan account. <br /> b. Upon default of borrower in the remittance of post-petition payments,Servicer will notify the <br /> borrower's(debtor's)counsel of the default,Instructing that further default will result In the filing <br /> of a Motion for Relief.If the borrower has no legal counsel and has filed their bankruptcy petition <br /> "pro se", (on their own behalf) or with the assistance of a licensed paralegal, Servicer can <br /> communicate directly with the borrower. In addition, notification of the default will be <br /> forwarded to the Trustee's office. Should there be a continued default in post-petition payments, <br /> and at the instruction of the Client,Servitor will file the Motion for Relief.Once authorized by the <br /> court,and as directed by the Client,Servicer may then begin foreclosure proceedings. <br /> Subordination Processing <br /> 1. Subordination Request Package: Upon a borrower's request for a subordination,Servicer will send a <br /> Subordination Request Package to the borrower or designee(lender or title). The Client may require <br /> the borrower to pay the cost of the subordination processing at application or the Client may pay the <br /> cost upon billing from Servicer, <br /> 2. Review Process: The purpose of the subordination review process is to determine that the new senior <br /> loan on the borrower's property will be made in conformance with the Client's subordination policy <br /> and that the Client's title position and security for its note is properly treated. Also, a review of <br /> income of the borrower may be performed if there are ongoing restrictions on Income levels for the <br /> program participant. Documentation typically required for the review may Include the following: <br /> a. Letter from borrower with reasons for requesting subordination <br /> b. FNMA 1003 application,or other applicable application,for new senior loan <br /> c, Lender's approval of new senior loan <br /> d, Title report <br />