USDA & Rural Asset Management

Property Inspections (high priority)

We understand the requirement by the USDA/RD to perform property inspections every 30 days or more. We do it no less than every 7-10 days, depending on the requirements of the client. Our transaction management and tasking software makes it easy for us to present and/or share inspection results on demand. They are well documented. This helps reduce your stress load at meeting requirements. We do that for you.

Eviction Proceedings (high priority)

When a property is occupied, this requires additional sensitivity and diplomacy. We will assist, as required, in ensuring all activities comply with the requirements of PTFA. We always hope that a voluntary vacate can be secured via relocation assistance during the eviction proceedings.

Property Disposition Plan (“PDP”) Submission

A copy of each PDP document will be uploaded into the system and is accessible by our clients on demand. Upon direction, the completed PDP to USDA/RD will be documented with approval and submission dates and added to the property record.

Property Disposition Plan (“PDP”) Approval

We realize that the USDA/RD does not always respond. If no response is received within five business days after submission, the plan will most likely be implemented and approved. We count on the client to confirm on the sixth day after submission to ensure that no request for clarification or additional information has been received by either party from the USDA/RD. We aim to complete this process, including any requests for clarification or additional documentation, within two business days. We understand that sometimes additional values, inspection, and other actions may push the timeline further. When it is finally approved, the approval date will be documented before proceeding to the next step in the marketing process.

Revisions to Property Disposition Plan (“PDP”)

All revised document copies will be uploaded as approved and available to our clients on demand.

USDA/RD Properties & Claims and MI Properties

We also realize that the RD determines the list price after the PDP is sent to them. They will email the approval letter, advising us on the list price and if they will approve repairs or pay concessions. We view this as our listing approval. We know they typically will not approve concessions or make repairs unless it is a safety issue, such as broken windows, plumbing, or heating. If we get an offer with concessions, we will send it to them for approval. If, during the six-month period in this process, we advise a price reduction or want to encourage them to accept an offer below the floor, we will need to email USDA requesting approval.

We understand that RD typically will no longer advise on the list price or offers once the six-month marketing period has expired. Price reductions and offers from this point become CHFA’s decision.

If a property goes Under Contract close to the end of the six-month marketing period, we will strive to get approval from RD to extend the Claim File Date until after the REO Closing.

If a property sells within the six-month marketing period, we understand the claim is due within 30 days of the REO Sale Date. We also understand that all management fees, homeowners’ assistance down payment programs, RD Guarantee Fees, and gift funds are not reimbursable on the loss claim. If the property has a sump pump, we will ensure it is in good working condition. We will also ensure that steps are taken to preserve and protect the property as necessary.