If the CTP violation is not cleared in the time allotted, and/or if the CTP immediate failure threshold is breached, we will first provide a notice that we have foreclosed on the collateral backing your loan, and later we will liquidate sufficient collateral to repay the unpaid loan balance, including fees, and close the loan. Such a liquidation may occur immediately or on a delay after we have provided you with the foreclosure notice, and once the foreclosure notice is sent, it cannot be reversed. Any remaining collateral will be returned to you.
A loan with an active CTP violation.
150% CTP ratio—CTP violation
An automated CTP violation will occur if your loan's CTP ratio reaches below 150%. When the CTP violation is triggered, you will receive an email notifying you to bring your loan's collateral-to-principal ratio back into compliance with the covenants in your loan documents. You will have 24 hours to clear the CTP violation.
120% CTP ratio—CTP immediate failure
At a CTP ratio of 120%, we will first provide a notice that we have foreclosed on the collateral backing your loan, and later we will liquidate sufficient collateral to repay the unpaid loan balance, including fees, and close the loan.