Cx7924, Section 184 Individual Allotted Trust Land Rider (No Lease), has been updated with minor changes to reflect the new HUD model form 50120 released in February of this year. The date in the footer has been updated and relocated to the right side of the bottom margin to reflect the model form. The OMB approval number, approval expiration date, and a Section 184 case number label have been inserted in the top right area of the first page of Cx7924.
Under the Section 184 program, American Indians, Alaskan Native families, and Tribes are able to increase this access to financing home mortgage loans. Section 184 loans are guaranteed 100% by HUD. These loans are available for lands on and off native lands. They can cover new construction, rehabilitation, purchase of an existing home, and a refinance.
The Trust Land Rider is an integral component of this program by ensuring Section 184 loans to eligible people do not threaten the unique status of property situated on Indian Trust Land in the event of a foreclosure. This Rider states, essentially, that necessary steps will be taken to ensure the restricted status of the land on which the home is located will not be altered. The Rider prohibits the sale of the property, by the mortgagee or HUD Secretary, to any person(s) other than an eligible tribal member, the Indian tribe, or the Indian housing authority or TDHE servicing the Indian tribe in which the property is located. Assumption of the mortgage is likewise limited to eligible persons. Foreclosure proceedings are restricted in venue to Federal district courts or another court of competent jurisdiction. Eviction of the borrower by the HUD Secretary is enabled but the land cannot be removed from trust or restricted status absent application to the Secretary of the Interior. These additional mortgage covenants contained in the Trust Land Rider are necessary to preserve the status of tribal lands while expanding access to financing for home acquisition.
For more information about this program you can visit the HUD website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/ih/homeownership/184.
These changes will take effect on October 16, 2013. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
October 9, 2013