Appraisal Method. If the seller chooses to have the loss amount estab- lished by appraisal rather than liquida- tion, the Agency will complete an ap- praisal on the real estate, and the loss claim amount will be based on the dif- ▇▇▇▇▇▇▇ between the appraised value at the time the loss is calculated and the unpaid principal balance of the land contract at that time. (A) The only administrative appeal allowed under § 761.6 of this chapter re- lated to the resulting appraisal amount will be a determination of whether the appraisal is Uniform Standards of Pro- fessional Appraisal Practice (USPAP) compliant. (B) The seller will give the Agency a lien on the security property in the amount of the loss claim payment. If the property sells within 5 years from the date of the loss payment for an amount greater than the appraised value used to establish the loss claim amount, the seller must repay the dif- ▇▇▇▇▇▇▇, up to the amount of the loss claim. For purposes of determining the amount to be repaid (recapture), the market value of the property may be reduced by the value of certain capital improvements, as specified in § 766.202(a)(1)–(3) of this chapter, made by the seller to the property in the time period from the loss claim to final disposition. If the property is not sold within 5 years from the date of the loss payment, the Agency will release the lien and the seller will have no further obligation to the Agency. (a) Any amount paid by FSA as a re- ▇▇▇▇ of an approved loss claim is imme- diately due and payable by the buyer after FSA notifies the buyer that a loss claim has been paid to the seller. If the debt is not restructured into a repay- ment plan or the obligation otherwise cured, FSA may use all remedies avail- able, including offset as authorized by the Debt Collection Improvement Act of 1996, to collect the debt. (1) Interest on the debt will be at the FLP non-program real property loan rate in effect at the time of the first Agency payment of a loss claim. (2) The debt may be scheduled for re- payment consistent with the buyer’s repayment ability, not to exceed 7 years. Before any payment plan can be approved, the buyer must provide the Agency with the best lien obtainable on all of the buyer’s assets. This in- cludes the buyer’s ownership interest in the real estate under contract for guarantees using the prompt payment guarantee plan. When the buyer is an entity, the best lien obtainable will be taken on all of the entity’s assets, and all assets owned by individual members of the entity, including their ownership interest in the real estate under con- tract. (b) Annually, buyers with an Agency approved repayment plan under this section will supply the Agency a cur- rent balance sheet, income statement, cash flow budget, complete copy of Federal income tax returns, and any additional information needed to ▇▇▇- lyze the buyer’s financial condition. (c) If a buyer fails to make required payments to the Agency as specified in the approved repayment plan, the debt will be treated as a non-program loan debt, and servicing will proceed as specified in § 766.351(c) of this chapter. (a) The Agency may deny a loss claim in whole or in part due to neg- ligence that contributed to the loss claim. This could include, but is not limited to: (1) The escrow and servicing agent failing to seek payment of a missed in- stallment from the buyer within the prescribed timeframe or otherwise does not enforce the terms of the land con- tract; (2) Losing the collateral to a third party, such as a taxing authority, prior lien holder, etc; (3) Not performing the duties and re- sponsibilities required of the escrow or servicing agent; (4) The seller’s failure to disclose en- vironmental issues; or (5) Any other action in violation of the land contract or guarantee agree- ment that does not terminate the guar- ▇▇▇▇▇. (b) [Reserved]
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Appraisal Method. If the seller chooses to have the loss amount estab- lished by appraisal rather than liquida- tion, the Agency will complete an ap- praisal on the real estate, and the loss claim amount will be based on the dif- ▇▇▇▇▇▇▇ between the appraised value at the time the loss is calculated and the unpaid principal balance of the land contract at that time.
(A) The only administrative appeal allowed under § 761.6 of this chapter re- lated to the resulting appraisal amount will be a determination of whether the appraisal is Uniform Standards of Pro- fessional Appraisal Practice (USPAP) compliant.
(B) The seller will give the Agency a lien on the security property in the amount of the loss claim payment. If the property sells within 5 years from the date of the loss payment for an amount greater than the appraised value used to establish the loss claim amount, the seller must repay the dif- ▇▇▇▇▇▇▇, up to the amount of the loss claim. For purposes of determining the amount to be repaid (recapture), the market value of the property may be reduced by the value of certain capital improvements, as specified in § 766.202(a)(1)–(3) of this chapter, made by the seller to the property in the time period from the loss claim to final disposition. If the property is not sold within 5 years from the date of the loss payment, the Agency will release the lien and the seller will have no further obligation to the Agency.
(a) Any amount paid by FSA as a re- ▇▇▇▇ of an approved loss claim is imme- diately due and payable by the buyer after FSA notifies the buyer that a loss claim has been paid to the seller. If the debt is not restructured into a repay- ment plan or the obligation otherwise cured, FSA may use all remedies avail- able, including offset as authorized by the Debt Collection Improvement Act of 1996, to collect the debt.
(1) Interest on the debt will be at the FLP non-program real property loan rate in effect at the time of the first Agency payment of a loss claim.
(2) The debt may be scheduled for re- payment consistent with the buyer’s repayment ability, not to exceed 7 years. Before any payment plan can be approved, the buyer must provide the Agency with the best lien obtainable on all of the buyer’s assets. This in- cludes the buyer’s ownership interest in the real estate under contract for guarantees using the prompt payment guarantee plan. When the buyer is an entity, the best lien obtainable will be taken on all of the entity’s assets, and all assets owned by individual members of the entity, including their ownership interest in the real estate under con- tract.
(b) Annually, buyers with an Agency approved repayment plan under this section will supply the Agency a cur- rent balance sheet, income statement, cash flow budget, complete copy of Federal income tax returns, and any additional information needed to ▇▇▇- lyze the buyer’s financial condition.
(c) If a buyer fails to make required payments to the Agency as specified in the approved repayment plan, the debt will be treated as a non-program loan debt, and servicing will proceed as specified in § 766.351(c) of this chapter.
(a) The Agency may deny a loss claim in whole or in part due to neg- ligence that contributed to the loss claim. This could include, but is not limited to:
(1) The escrow and servicing agent failing to seek payment of a missed in- stallment from the buyer within the prescribed timeframe or otherwise does not enforce the terms of the land con- tract;
(2) Losing the collateral to a third party, such as a taxing authority, prior lien holder, etc;
(3) Not performing the duties and re- sponsibilities required of the escrow or servicing agent;
(4) The seller’s failure to disclose en- vironmental issues; or
(5) Any other action in violation of the land contract or guarantee agree- ment that does not terminate the guar- ▇▇▇▇▇.
(b) [Reserved]
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Sources: Loan Guarantee Agreement