Common use of Servicing plan Clause in Contracts

Servicing plan. The Lender must submit a servicing plan to RHS when the account is 90 days delinquent and a method other than foreclosure is rec- ommended to resolve delinquency. RHS encourages Lenders and delinquent borrowers to explore an acceptable al- ternative to foreclosure to reduce loss and expenses of foreclosure. Although prior approval is not required in all cases, the Agency may reject a plan that does not protect the Government’s interest.