[§201H-164]  Default.  If the borrowerdefaults in the payment of any installment of principal or interest of thedownpayment loan, the corporation or mortgage lender shall take all necessaryaction to collect the delinquent amounts and may take all actions generallyallowed holders of mortgages, including the power to foreclose.  Upon anyforeclosure of the second mortgage, the corporation or mortgage lender onbehalf of the corporation, may purchase the interest of the borrower in and tothe residential property, take possession thereof and assume all of theobligations of the borrower under the first mortgage held by the private lenderand any other liens having priority over the second mortgage that may thenexist.  On the acquisition of the borrower's interest, the corporation, at itsoption, may pay in full the unpaid balance of the borrower's obligation securedby the first mortgage and other prior liens; repair, renovate, modernize, orimprove the residential property; and, with or without clearing the property ofall prior mortgages and liens, sell, lease, or rent the property or use ordispose of the same in any manner authorized by law. [L 2006, c 180, pt of §4]