Can a mortgagee accept a DIL of foreclosure when there is an existing partial claim?

A mortgagee can consider a mortgagor for a DIL when a partial claim lien exists. With the mortgagor's consent, the consideration payable to the mortgagor may be used to effect a discharge of lien (HUD Mortgagee Letter 2000-05, page 37, paragraph E, "Condition of Title").

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