Mortgage lenders can help Mississippi homeowners who are receiving state grants to rebuild their homes in executing the closing documents, but they only have until April 17 to decide whether they want to participate in the hurricane recovery assistance program.There are concerns that the lenders/servicers might be subordinating their claims if they opt in, and many are anxiously awaiting guidance from Fannie Mae, Freddie Mac, the Federal Housing Administration, and private investors. By participating, lenders are assured that the loan will be made current and taxes will be paid. But after that point the homeowner has complete control of the funds, and there is no guarantee or requirement that the assistance be used to rebuild or repair the property. Initially, the Mississippi Development Authority gave lenders only three days to opt in, but lenders raised concerns and the MDV extended the opt-in period to April 17.

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