USDA Technical Handbook HB-1-3555 §19.4 — Calculating Net Recovery Value
USDA HB-1-3555 §19.4 (Calculating Net Recovery Value). Gap-fill (verbatim).
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Verbatim provisions from USDA Technical Handbook HB-1-3555 §19.4 — Calculating Net Recovery Value — 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.
USDA HB-1-3555, Chapter 19, § 19.4 — Calculating Net Recovery Value
As a part of the loss claim, the Agency will reimburse the servicer for the difference between the loss incurred by the servicer and the net recovery value of the property, within the limits of the guarantee. Net recovery value is the amount the servicer recovers from the sale of a property after accounting for all costs. Net recovery value is calculated differently for properties that have been sold than for properties that are in the servicer’s inventory at the time the loss claim is filed. For property that has already been sold, the actual net recovery value is used. For property that remains in the servicer’s inventory, the estimated net recovery value is used. A. Properties Sold at Foreclosure Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. When the servicer disposed of the property at the time of a loss claim submission, the actual net recovery value is calculated as the difference between: x The proceeds from the sale and any other amounts recovered, such as recovered escrow funds; and x Allowable liquidation and disposition costs. B. Acquired Properties The Agency estimates the net recovery value on unsold REO as the difference between: x The estimated value of the property based on the PSVC; x Allowable acquisition and management costs associated with liquidation; and x VA Net Value Factor.
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Source of record: https://claudeforcompliance.com/regs/usda-hb-3555-19-4/
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