[Code of Federal Regulations]
[Title 24, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR291.550]

[Page 505]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
 CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 
        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 291--DISPOSITION OF HUD-ACQUIRED SINGLE FAMILY PROPERTY--Table of Contents
 
               Subpart F--Officer Next Door Sales Program
 
Sec. 291.550  What is the second mortgage?

    The second mortgage is a mortgage and note on the home you purchase 
through the Officer Next Door Sales Program. The amount of the second 
mortgage is the difference between the list price of the home and the 
discounted selling price. The second mortgage will have the same term as 
the owner-occupancy term. The amount of the second mortgage will be 
reduced, according to a schedule established by HUD, periodically over 
the owner-occupancy term. If you fail to meet any of the continuing 
obligations of the OND Sales Program, you will owe HUD the amount due on 
the second mortgage. At the end of the owner-occupancy term, the amount 
of the second mortgage will be zero.