[§201H-164]  Default.  If the borrower
defaults in the payment of any installment of principal or interest of the
downpayment loan, the corporation or mortgage lender shall take all necessary
action to collect the delinquent amounts and may take all actions generally
allowed holders of mortgages, including the power to foreclose.  Upon any
foreclosure of the second mortgage, the corporation or mortgage lender on
behalf of the corporation, may purchase the interest of the borrower in and to
the residential property, take possession thereof and assume all of the
obligations of the borrower under the first mortgage held by the private lender
and any other liens having priority over the second mortgage that may then
exist.  On the acquisition of the borrower's interest, the corporation, at its
option, may pay in full the unpaid balance of the borrower's obligation secured
by the first mortgage and other prior liens; repair, renovate, modernize, or
improve the residential property; and, with or without clearing the property of
all prior mortgages and liens, sell, lease, or rent the property or use or
dispose of the same in any manner authorized by law. [L 2006, c 180, pt of §4]