7 CFR §3555.354 — Loss claim procedures (USDA Guaranteed Rural Housing)
7 CFR §3555.354 sets the USDA Section 502 Guaranteed Rural Housing Program loss-claim filing framework: mandatory use of the Agency- designated web-based automated system; 45-day claim-filing deadline for sold property; 60-day claim-filing deadline for REO property (with eviction extension); deficiency-judgment enforcement before submitting a loss claim; and Agency processing where there are no current collection prospects.
Verbatim regulatory text
Verbatim provisions from 7 CFR §3555.354 — Loss claim procedures (USDA Guaranteed Rural Housing) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
7 CFR §3555.354
All lenders must use a web-based automated system designated by the Agency to submit all loss claim requests.
7 CFR §3555.354(a)
(a) Sold property. For property that has been sold, the lender must submit a loss claim within 45 calendar days of the sale. Late claims made beyond this period of time may be rejected or reduced by Rural Development. Instructions and forms may be obtained from Rural Development.
7 CFR §3555.354(b)
(b) REO. If at liquidation, the title to the property is conveyed to the lender, the lender will submit a loss claim package, including a market value appraisal, within 60 days of the foreclosure sale date or the date the lender acquires title. If eviction action is required in order to obtain a market value appraisal, the lender must submit the loss claim package within 60 days of the date the occupants clear the premises. The lender must order a market value appraisal and include the market value appraisal with the loss claim package. The Agency will use the market value appraisal, along with other Agency required documentation, to determine the property value for the basis of the loss claim. The Agency will apply an acquisition and management resale factor to estimate holding and disposition costs, based on the most current VA Management and Acquisition Factor found at https://www.benefits.va.gov/HOMELOANS/servicers_valeri.asp.
7 CFR §3555.354(c)
(c) Deficiency judgments. The lender must enforce any judgment for which there are current prospects of collection before submitting a loss claim, and amounts collected must be applied against the outstanding debt. Rural Development will process the loss claim if there are no current prospects for collection. [78 FR 73941, Dec. 9, 2013, as amended at 81 FR 31165, May 18, 2016; 84 FR 70887, Dec. 26, 2019]
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