Common use of Realization Upon Defaulted Mortgage Loans Clause in Contracts

Realization Upon Defaulted Mortgage Loans. (a) The Company shall foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02. In connection with such foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject to the proviso that the Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with Accepted Servicing Practices, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which any Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner and the NIMs Insurer with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis Owner (with the consent of a Phase I environmental assessment the NIMs Insurer) shall direct the Servicer as to how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affectedthe Servicer shall follow the Owner's directions with respect thereto.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall foreclose upon or otherwise comparably convert the to ownership of properties Mortgaged Properties securing such of the Mortgage Loans as come into and continue in default and as to which when no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.023.01, subject to the provisions contained in the second succeeding paragraph of this Section 3.07 and only if the Servicer determines that there is sufficient equity in the related Mortgaged Property to justify such foreclosure. In connection with such foreclosure or other conversion conversion, the Company shallServicer will follow Accepted Servicing Practices, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject to including the proviso practice that the Company shall Servicer will not be required to expend its own funds in connection with any foreclosure or towards other conversion, correction of default on a related senior mortgage loan or restoration of any Mortgaged Property unless, in its sole judgment, foreclosure, correction or restoration will increase net liquidation proceeds and that, in the event that the related Mortgaged Property shall have suffered damage from an Uninsured Cause, the Servicer shall not be required to expend its own funds toward the restoration of any property such Mortgaged Property unless it shall determine (i) in its discretion that such restoration or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything In the event that title to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may is acquired in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect issued to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Indenture Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such the Insurer. If the Servicer has actual knowledge that a Mortgaged Property which the Servicer is determined contemplating acquiring in foreclosure or by deed in lieu of foreclosure is located within 1 mile of any site with environmental or hazardous waste risks, the Servicer will notify the Insurer prior to be so contaminated or affectedacquiring the Mortgaged Property and shall not take any action without prior written approval of the Insurer.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with Accepted Servicing Practices, to foreclose upon or otherwise comparably convert the ownership Ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02the terms of this Agreement. In connection with The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which any Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall direct the Servicer as to how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affectedthe Servicer shall follow the Owner’s directions with respect thereto.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with Accepted Servicing Practices, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02the terms of this Agreement. In connection with The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which any Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall direct the Servicer as to how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affectedthe Servicer shall follow the Owner’s directions with respect thereto.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with the procedures that the Servicer would use in servicing loans for its own account and the requirements of the Fxxxxx Mae Guide, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with determining the delinquency status of any Mortgage Loan, the Servicer will apply the definition of Delinquent as such term is defined under the related pooling and servicing agreement. The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall determine how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use reasonable efforts to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant payments. Servicer shall use reasonable efforts to Section 3.02. In connection with realize upon defaulted Mortgage Loans, in such manner as will maximize the receipt of principal and interest by the Seller, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that the Company provisions that, in any case in which Mortgaged Property shall have suffered damage, Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Seller after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by Servicer through PMI Proceeds, Other Insurance Proceeds or Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to the related Mortgaged Property. Neither Servicer shall notify the Trustee nor Seller in writing of the Company commencement of foreclosure proceedings. Such notice may be contained in the reports prepared by Servicer and delivered to the Seller pursuant to the terms and conditions of this Agreement. Servicer shall be liable responsible for all costs and expenses incurred by it in any foreclosure proceedings; provided, however, that it shall be entitled to reimbursement thereof from proceeds from the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a related Mortgaged Property. In additionNotwithstanding the foregoing provisions of this Section 5.3 or any other provision of this Agreement, neither with respect to any Mortgage Loan as to which Servicer has received actual notice of, or has actual knowledge of, the Trustee nor the Company shall be liable to the Trust Fund presence of any toxic or the Certificateholders if, based hazardous substance on the Company's belief that no such contamination or effect existsrelated Mortgaged Property, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee Servicer shall not, on behalf of the Trust Fund takes Seller, either (i) obtain title to such Mortgaged PropertyProperty as a result of or in lieu of foreclosure or otherwise, and thereafter or (ii) otherwise acquire possession of, or take any other action, with respect to, such Mortgaged Property is determined if, as a result of any such action, the Seller would be considered to hold title to, to be so contaminated a “mortgagee-in-possession” of, or affected.to be an “owner” or “operator” of such Mortgaged Property within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable law, unless Servicer has also previously determined, based on its reasonable judgment and a report prepared by a Person who regularly conducts environmental audits using customary industry standards, that:

Realization Upon Defaulted Mortgage Loans. (a) The Company shall foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02. In connection with such foreclosure or other conversion the Company shall, consistent with Section 3.05, shall follow such practices and procedures (including, in the case of any default on a related senior mortgage loan, the advancing of funds to correct such default) as it shall deem necessary or advisable and as shall be normal and usual in its general home equity mortgage loan servicing activities. The foregoing is subject to the proviso that the Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company In the event that any payment due under any Mortgage Loan is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall foreclose upon or otherwise comparably convert take such action as it shall deem to be in the ownership of properties securing such best interest of the Certificateholders. With respect to any defaulted Mortgage Loans as come into and continue in default and as Loan, the Servicer shall have the right to review the status of the related forbearance plan and, subject to the second paragraph of Section 3.01, may modify such forbearance plan; including, extending the Mortgage Loan repayment date for a period of one year, which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02period will not go beyond the latest Final Maturity Date. In connection with such a foreclosure or other conversion conversion, the Company shall, Servicer shall exercise such rights and powers vested in it hereunder and use the same degree of care and skill in its exercise as prudent mortgage servicers would exercise or use under the circumstances in the conduct of their own affairs and consistent with Section 3.05Applicable Regulations and the servicing standards set forth in the Xxxxxx Xxx Guide, follow such practices including, without limitation, advancing funds for the payment of taxes and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject insurance premiums with respect to the proviso that the Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the first lien Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance ProceedsLoans. Notwithstanding the foregoingforegoing provisions of this Section 3.03, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to any Mortgage Loan as to which the Servicer has received actual notice of, or has actual knowledge of, the presence of any toxic or hazardous substance on the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does Servicer shall not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes either (i) obtain title to such Mortgaged PropertyProperty as a result of or in lieu of foreclosure or otherwise, and thereafter or (ii) otherwise acquire possession of, or take any other action with respect to, such Mortgaged Property is determined if, as a result of any such action, the Trust Fund would be considered to hold title to, to be so contaminated a mortgagee-in-possession of, or affected.to be an owner or operator of such Mortgaged Property within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable law, unless the Servicer has also previously determined, based on its reasonable judgment and a prudent report prepared by a Person who regularly conducts environmental audits using customary industry standards, that:

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with Accepted Servicing Practices, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which any Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall direct the Servicer as to how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affectedthe Servicer shall follow the Owner’s directions with respect thereto.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use reasonable efforts to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant payments. Servicer shall use reasonable efforts to Section 3.02. In connection with realize upon defaulted Mortgage Loans, in such manner as will maximize the receipt of principal and interest by the Seller, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that the Company provisions that, in any case in which Mortgaged Property shall have suffered damage, Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Seller after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by Servicer through PMI Proceeds, Other Insurance Proceeds or Liquidation Proceeds or Insurance Proceedsfrom the related Mortgaged Property. Notwithstanding Servicer shall notify the foregoingSeller in writing of the commencement of foreclosure proceedings. Such notice may be contained in the reports prepared by Servicer and delivered to the Seller pursuant to the terms and conditions of this Agreement. Servicer shall be responsible for all costs and expenses incurred by it in any foreclosure proceedings; provided, the Company however, that it shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received reimbursement thereof from proceeds from the Mortgagor for such expensesrelated Mortgaged Property. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes and has the Seller’s consent, or if the Seller or its designee otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall have such inspection performed. Upon completion of the inspection, the Servicer shall promptly provide the Seller or its designee with a written report of the environmental inspection. In the event that the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes, materials the Servicer shall not proceed with foreclosure or substancesacceptance of a deed in lieu of foreclosure. In the event that the environmental inspection report is inconclusive as to whether or not the Mortgaged Property is contaminated by hazardous or toxic substances or wastes, the Servicer shall not, without the prior approval of the Seller, proceed with foreclosure or acceptance of a deed in lieu of foreclosure. In such instance, the Seller shall be deemed to have approved such foreclosure or acceptance of a deed in lieu of foreclosure unless the Seller notifies the Servicer in writing, within ten (10) days after its receipt of written notice of the proposed foreclosure or deed in lieu of foreclosure from the Servicer, that it disapproves of the related foreclosure or acceptance of a deed in lieu of foreclosure. The Company may, but Servicer shall not be obligated to, make such determination on reimbursed for all Servicing Advances made pursuant to the basis of a Phase I environmental assessment preceding paragraph and this paragraph with respect to the related Mortgaged Property. Neither Property from the Trustee nor Custodial Account, REO Account or as otherwise provided in the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affectedrelated Transaction Documents.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with Accepted Servicing Practices, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which any Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic wastes, materials substances or substances. The Company may, but shall not be obligated to, make such determination wastes (including mold if it has a material adverse effect on the basis Owner’s interest in the related Mortgage Loan), or if the Owner otherwise reasonably requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a Phase I qualified inspector at the Owner’s expense. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental assessment inspection. After reviewing the environmental inspection report, the Owner shall direct the Servicer as to how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affectedthe Servicer shall follow the Owner’s directions with respect thereto.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with the procedures that the Servicer would use in servicing loans for its own account and the requirements of the Xxxxxx Xxx Guide, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with determining the delinquency status of any Mortgage Loan, the Servicer will apply the definition of Delinquent as such term is defined under the related pooling and servicing agreement. The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall determine how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with the procedures that the Servicer would use in servicing loans for its own account and the requirements of the Fxxxxx Mxx Guide, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with determining the delinquency status of any Mortgage Loan, the Servicer will apply the definition of Delinquent as such term is defined under the related pooling and servicing agreement. The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall determine how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with Accepted Servicing Practices, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which any Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner and the NIMs Insurer with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis Owner (with the consent of a Phase I environmental assessment the NIMs Insurer) shall direct the Servicer as to how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affectedthe Servicer shall follow the Owner’s directions with respect thereto.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with Accepted Servicing Practices, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner and Lender, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner and Lender after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall notify the Owner and Lender in writing of the commencement of foreclosure proceedings. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received reimbursement therefor from the Mortgagor for such expensesrelated Mortgaged Property, as contemplated in Section 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner or Lender otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner and Lender with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis Owner, after receipt of a Phase I environmental assessment written consent of the Lender, and Lender shall determine how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company In the event that any payment due under any Mortgage Loan is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the related Servicer shall foreclose upon or otherwise comparably convert take such action as it shall deem to be in the ownership of properties securing such best interest of the Certificateholders. With respect to any defaulted Mortgage Loans as come into and continue in default and as Loan, the related Servicer shall have the right to which no satisfactory arrangements can be made for collection review the status of delinquent payments pursuant the related forbearance plan and, subject to Section 3.023.01(c), may modify such forbearance plan; including extending the Mortgage Loan repayment date for a period of one year or reducing the Mortgage Interest Rate. In connection with such a foreclosure or other conversion the Company shallconversion, each Servicer shall act consistent with Applicable Regulations and the applicable Servicing Standard, including, without limitation, advancing funds for the payment of taxes and insurance premiums. Notwithstanding the foregoing provisions of this Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject to the proviso that the Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to any Mortgage Loan as to which the related Servicer has received actual notice of, or has actual knowledge of, the presence of any toxic or hazardous substance on the related Mortgaged Property. Neither the Trustee nor the Company , such Servicer shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes (i) obtain title to such Mortgaged PropertyProperty as a result of or in lieu of foreclosure or otherwise, and thereafter or (ii) otherwise acquire possession of, or take any other action with respect to, such Mortgaged Property is determined if, as a result of any such action, the Trust would be considered to hold title to, to be so contaminated a mortgagee in possession of, or affected.to be an owner or operator of such Mortgaged Property within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable law, unless the related Servicer has received the prior written consent of the NIMS Insurer and has received a prudent report prepared by a Person who regularly conducts environmental audits using customary industry standards, that:

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall foreclose upon or otherwise comparably convert the to ownership of properties Mortgaged Properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.025.02(a). Prior to conducting any sale in a foreclosure proceeding or recording a deed-in-lieu of foreclosure with respect to any Mortgaged Property, the Servicer shall cause an environmental review to be performed, in accordance with Accepted Servicing Practices on the Mortgaged Property by a company such as Equifax, Inc. or Toxicheck. In connection with such foreclosure or other conversion conversion, the Company shall, consistent with Section 3.05, Servicer shall follow such practices (including, in the case of any default on a related senior mortgage loan, the advancing of funds to correct such default) and procedures which are consistent with Accepted Servicing Practices as it shall deem necessary or advisable and as shall be normal and usual in its general first and second mortgage loan servicing activities. If the Servicer determines, as described above, that it is in the best economic interest of the Trust Fund to take such actions as are necessary to bring any such Mortgaged Property into compliance with applicable environmental laws, or to take such action with respect to the containment, clean-up or remediation of hazardous substances, hazardous materials, hazardous wastes or petroleum-based materials affecting any such Mortgaged Property, then the Servicer shall take such action as it deems to be in the best economic interest of the Trust Fund. The foregoing is subject to the proviso that the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the correction of any default on a related senior mortgage loan or restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase unless, in the proceeds of liquidation reasonable judgment of the Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that Servicer, such expenses will be recoverable to it either through from Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, if such environmental audit reveals, or if the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completionServicer has actual knowledge or notice, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated contains such wastes or affectedsubstances, the Servicer shall not foreclose or accept a deed in lieu of foreclosure without the prior written consent of the Certificate Insurer.

Realization Upon Defaulted Mortgage Loans. (a) The Company In the event that any payment due under any Mortgage Loan is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall foreclose upon or otherwise comparably convert take such action as it shall deem to be in the ownership of properties securing such best interest of the Certificateholders. With respect to any defaulted Mortgage Loans as come into and continue in default and as Loan, the Servicer shall have the right to which no satisfactory arrangements can be made review the status of the related forbearance plan and, subject to the second paragraph of Section 3.01, may modify such forbearance plan; including, extending the Mortgage Loan repayment date for collection a period of delinquent payments pursuant one year or reducing the Mortgage Interest Rate up to Section 3.0250 basis points. In connection with such a foreclosure or other conversion conversion, the Company shall, Servicer shall exercise such rights and powers vested in it hereunder and use the same degree of care and skill in its exercise as prudent mortgage servicers would exercise or use under the circumstances in the conduct of their own affairs and consistent with Section 3.05Applicable Regulations and the servicing standards set forth in the Fannie Mae Guide, follow such practices including, without limitation, advancing funds for thx xxxxexx of taxes and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject insurance premiums with respect to the proviso that the Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the first lien Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance ProceedsLoans. Notwithstanding the foregoingforegoing provisions of this Section 3.03, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to any Mortgage Loan as to which the Servicer has received actual notice of, or has actual knowledge of, the presence of any toxic or hazardous substance on the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does Servicer shall not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes either (i) obtain title to such Mortgaged PropertyProperty as a result of or in lieu of foreclosure or otherwise, and thereafter or (ii) otherwise acquire possession of, or take any other action with respect to, such Mortgaged Property is determined if, as a result of any such action, the Trust Fund would be considered to hold title to, to be so contaminated a mortgagee-in-possession of, or affected.to be an owner or operator of such Mortgaged Property within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable law, unless the Servicer has also previously determined, based on its reasonable judgment and a prudent report prepared by a Person who regularly conducts environmental audits using customary industry standards, that:

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with the Servicing Standard, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with such foreclosure or other conversion the Company shallThe Servicer may also, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesdiscretion, as an alternative to foreclosure, sell defaulted Mortgage Loans at fair market value to third-parties, if the Servicer reasonably believes that such sale would maximize proceeds to the Owner in the aggregate (on a present value basis) with respect to that Mortgage Loan. The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure proceedings. The foregoing is subject to the proviso that provisions that, in any case in which any Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings, sales or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; PROVIDED, the Company HOWEVER, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall direct the Servicer as to how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter the Servicer shall follow the Owner's directions with respect thereto. The Servicer, in its sole discretion, may, with respect to any second lien Mortgage Loan which is greater than 180 days delinquent and for which the related superior lien is not a Mortgage Loan, charge off such Mortgaged Property second lien Mortgage Loan if it has made a Final Recovery Determination with respect thereto (each such Mortgage Loan, a "Charged-off Mortgage Loan"). The Servicer shall have no obligation to make any Monthly Advances or Servicing Advances with respect to such Charged-off Mortgage Loan for the period following the date on which such second lien Mortgage Loan was charged off. Any net Liquidation Proceeds received in connection with any recoveries received with respect to such Charged-off Mortgage Loan shall be deposited in the Custodial Account pursuant to Section 4.04. The Servicer does not service Mortgage Loans subject to the Home Ownership and Equity Protection Act of 1994, as amended ("HOEPA"). With respect to a HOEPA claim loan, upon receipt of notice from the Owner or the Mortgagor that the Mortgagor has instituted a claim that its Mortgage Loan was originated in violation of HOEPA, the Servicer shall, unless otherwise directed by the Owner, suspend all of its loss mitigation activities with respect to such Mortgage Loan until such time as such claim has been resolved. In the event that the Owner provides direction to the Servicer, Servicer shall continue to service such HOEPA claim loan, provided that such direction is determined to be so contaminated or affectednot inconsistent with the Servicing Standard.

Realization Upon Defaulted Mortgage Loans. (a) The Company shall foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02. In connection with such foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject to the proviso that the Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the Mortgage Loan in a particular Mortgage Pool to the related Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with the procedures that the Servicer would use in servicing loans for its own account and the requirements of the Fannie Mae Guide, to foreclose upon or otherwise comparably convert the ownership xxx xwnership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with determining the delinquency status of any Mortgage Loan, the Servicer will apply the definition of Delinquent as such term is defined under the related pooling and servicing agreement. The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall determine how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with Accepted Servicing Practices, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which any Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall direct the Servicer as to how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined the Servicer shall follow the Owner's directions with respect thereto. The Servicer and the Owner hereby agree that, in the event of a Securitization Transaction, the Special Foreclosure Rights substantially in the form attached hereto as Exhibit K shall be applicable to be so contaminated the Servicer or affectedany Subservicer with respect to the applicable Mortgage Loans.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with the procedures that the Servicer would use in servicing loans for its own account and the requirements of the Xxxxxx Mae Guide, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with determining the delinquency status of any Mortgage Loan, the Servicer will apply the definition of Delinquent as such term is defined under the related pooling and servicing agreement. The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall determine how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02. In connection with such foreclosure or other conversion the Company Servicer shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject to the proviso that the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, the Company Servicer shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company Servicer shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company Servicer may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the CompanyServicer's belief that such contamination or effect exists, the Company Servicer does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company Servicer shall be liable to the Trust Fund or the Certificateholders if, based on the CompanyServicer's belief that no such contamination or effect exists, the Company Servicer forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall use its reasonable efforts, consistent with the procedures that the Servicer would use in servicing loans for its own account and the requirements of the Xxxxxx Mae Guide, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.01. In connection with determining the delinquency status of any Mortgage Loan, the Servicer will apply the definition of Delinquent as such term is defined under the Pooling and Servicing Agreement. The Servicer shall use its reasonable efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activitiesproceedings. The foregoing is subject to the proviso that provisions that, in any case in which Mortgaged Property shall have suffered damage, the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards toward the restoration of any such property unless it shall determine in its discretion (i) that such restoration or foreclosure will increase the proceeds of liquidation of the related Mortgage Loan to Certificateholders the Owner after reimbursement to itself for such expenses expenses, and (ii) that such expenses will be recoverable to it either by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.05. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or Insurance Proceeds. Notwithstanding the foregoingfunctions as Servicing Advances; provided, the Company however, that it shall not be entitled to recover legal expenses incurred reimbursement therefor as provided in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expensesSection 4.05. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the Company shall be under no obligation event the Servicer has reasonable cause to foreclose upon or otherwise convert the ownership of any believe that a Mortgaged Property which it believes may be is contaminated with or affected by hazardous or toxic substances or wastes, materials or substancesif the Owner otherwise requests an environmental inspection or review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified inspector. The Company mayUpon completion of the inspection, but the Servicer shall not be obligated topromptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, make such determination on the basis of a Phase I environmental assessment Owner shall determine how the Servicer shall proceed with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company In the event that any payment due under any Conventional Mortgage Loan is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall foreclose upon or otherwise comparably convert take such action as it shall deem to be in the ownership of properties securing such best interest of the Certificateholders. With respect to any defaulted Mortgage Loans as come into and continue in default and as Loan, the Servicer shall have the right to which no satisfactory arrangements can be made review the status of the related forbearance plan and, subject to the second paragraph of Section 3.01, may modify such forbearance plan; including, extending the Mortgage Loan repayment date for collection a period of delinquent payments pursuant one year or reducing the Mortgage Interest Rate up to Section 3.0250 basis points. In connection with such a foreclosure or other conversion conversion, the Company shall, Servicer shall exercise such rights and powers vested in it hereunder and use the same degree of care and skill in its exercise as prudent mortgage servicers would exercise or use under the circumstances in the conduct of their own affairs and consistent with Section 3.05Applicable Regulations and the servicing standards set forth in the Xxxxxx Xxx Guide, follow such practices including, without limitation, advancing funds for the payment of taxes and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject insurance premiums with respect to the proviso that the Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the first lien Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance ProceedsLoans. Notwithstanding the foregoingforegoing provisions of this Section 3.03, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to any Mortgage Loan as to which the Servicer has received actual notice of, or has actual knowledge of, the presence of any toxic or hazardous substance on the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does Servicer shall not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes either (i) obtain title to such Mortgaged PropertyProperty as a result of or in lieu of foreclosure or otherwise, and thereafter or (ii) otherwise acquire possession of, or take any other action with respect to, such Mortgaged Property is determined if, as a result of any such action, the Trust Fund would be considered to hold title to, to be so contaminated a mortgagee-in-possession of, or affected.to be an owner or operator of such Mortgaged Property within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable law, unless the Servicer has also previously determined, based on its reasonable judgment and a prudent report prepared by a Person who regularly conducts environmental audits using customary industry standards, that:

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall foreclose upon or otherwise comparably convert the to ownership of properties Mortgaged Properties securing such of the Mortgage Loans as come into and continue in default when, in the opinion of the Servicer based upon the practices and as procedures referred to which in the following sentence, no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.024.2; provided that if the Servicer has actual knowledge or reasonably believes that any Mortgaged Property is affected by hazardous or toxic wastes or substances and that the acquisition of such Mortgaged Property would not be commercially reasonable, then the Servicer will not cause the Trust or Indenture Trustee to acquire title to such Mortgaged Property in a foreclosure or similar proceeding and, if any such property so acquired is determined to be affected by hazardous or toxic wastes or substances, the Indenture Trustee shall not be liable and shall be indemnified by the Seller to the full extent of any liability pursuant to the Comprehensive Environmental Response, Compensation and Liability Act or any similar state statute with respect to such matters. In connection with such foreclosure or other conversion conversion, the Company shall, consistent with Section 3.05, Servicer shall follow such practices (which may include, in the case of any default on a related senior mortgage loan, the advancing of funds to correct such default) and procedures as it shall deem deem, necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject to the proviso that the Company Servicer shall not be required to expend advance its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure expenditure will increase the proceeds of liquidation of the Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Net Liquidation Proceeds or Insurance Proceeds. Notwithstanding Any such amounts advanced pursuant to this Section 4.6 shall constitute Servicing Advances within the foregoing, meaning of Section 4.4. In the Company shall not be entitled event that title to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may is acquired in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale for such REO Property shall be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect issued to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable Indenture Trustee, or to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title Noteholders and the Insurer. The Servicer shall manage, conserve, protect and operate each REO Property for the Noteholders solely for the purpose of its prompt disposition and sale. Pursuant to its efforts to sell such REO Property, the Servicer shall either itself or through an agent selected by the Servicer protect and conserve such REO Property in the same manner and to such Mortgaged Property, and thereafter extent as is customary in the locality where such Mortgaged REO Property is determined located and may, incident to its conservation and protection of the interests of the Noteholders and the Insurer, rent the same, or any part thereof, as the Servicer deems to be so contaminated or affectedin the best interest of the Noteholders and the Insurer for the period prior to the sale of such REO Property.

Realization Upon Defaulted Mortgage Loans. (a) The Company Servicer shall foreclose upon or otherwise comparably convert the to ownership of properties Mortgaged Properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.025.02(a). Prior to conducting any sale in a foreclosure proceeding or recording a deed-in- lieu of foreclosure with respect to any Mortgaged Property, the Servicer shall cause an environmental review to be performed, in accordance with Accepted Servicing Practices on the Mortgaged Property by a company such as Equifax, Inc. or Toxicheck. In connection with such foreclosure or other conversion conversion, the Company shall, consistent with Section 3.05, Servicer shall follow such practices (including, in the case of any default on a related senior mortgage loan, the advancing of funds to correct such default) and procedures which are consistent with Accepted Servicing Practices as it shall deem necessary or advisable and as shall be normal and usual in its general first and second mortgage loan servicing activities. If the Servicer determines, as described above, that it is in the best economic interest of the Trust Fund to take such actions as are necessary to bring any such Mortgaged Property into compliance with applicable environmental laws, or to take such action with respect to the containment, clean-up or remediation of hazardous substances, hazardous materials, hazardous wastes or petroleum-based materials affecting any such Mortgaged Property, then the Servicer shall take such action as it deems to be in the best economic interest of the Trust Fund. The foregoing is subject to the proviso that the Company Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the correction of any default on a related senior mortgage loan or restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase unless, in the proceeds of liquidation reasonable judgment of the Mortgage Loan to Certificateholders after reimbursement to itself for such expenses and (ii) that Servicer, such expenses will be recoverable to it either through from Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, if such environmental audit reveals, or if the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completionServicer has actual knowledge or notice, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated contains such wastes or affectedsubstances, the Servicer shall not foreclose or accept a deed in lieu of foreclosure without the prior written consent of the Certificate Insurer.

Realization Upon Defaulted Mortgage Loans. (a) The Company shall foreclose upon or otherwise comparably convert the ownership of properties Mortgaged Properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02. In connection with such foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject to the proviso that the Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Certificateholders of the related Certificate Group after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the related Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the related Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the related Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.

Realization Upon Defaulted Mortgage Loans. (a) The Company shall foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.02. In connection with such foreclosure or other conversion the Company shall, consistent with Section 3.05, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities. The foregoing is subject to the proviso that the Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Certificateholders of the related Certificate Group after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable to it either through Liquidation Proceeds or Insurance Proceeds. Notwithstanding the foregoing, the Company shall not be entitled to recover legal expenses incurred in connection with foreclosure proceedings where the Mortgage Loan is reinstated and such foreclosure proceedings are terminated prior to completion, other than sums received from the Mortgagor for such expenses. Notwithstanding anything to the contrary contained herein, the Company shall be under no obligation to foreclose upon or otherwise convert the ownership of any Mortgaged Property which it believes may be contaminated with or affected by hazardous or toxic wastes, materials or substances. The Company may, but shall not be obligated to, make such determination on the basis of a Phase I environmental assessment with respect to the related Mortgaged Property. Neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that such contamination or effect exists, the Company does not foreclose upon or otherwise convert the ownership of a Mortgaged Property. In addition, neither the Trustee nor the Company shall be liable to the Trust Fund or the Certificateholders if, based on the Company's belief that no such contamination or effect exists, the Company forecloses upon a Mortgaged Property and the Trustee or its nominee on behalf of the Trust Fund takes title to such Mortgaged Property, and thereafter such Mortgaged Property is determined to be so contaminated or affected.