We realize that USDA/RD assets are a different type of property. We will service these assets in accordance with the USDA/RD guidelines. We understand that typically, for a period of six months following the foreclosure sale date, almost all activities of servicing the asset must be approved by USDA/RD office. This is why we are so selective with which vendors we bring in on these assets, since the relationship will be ongoing for a period of time.
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 by the client. Because of our task management system, it is easy for us to present and/or share inspections results on demand. They are well documented. This helps reduce your stress load at meeting requirements. We do that for you.
When a property is occupied, this requires additional sensitivity and diplomacy. This does not change that eviction proceedings will be initiated immediately. We will assist, as required, to ensure all activity complies with the requirements of PTFA. We always hope that a voluntary vacate can be secured via relocation assistance during the eviction proceedings.
Since our transactions are in our task management system, 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 date and submission date and added to the property record in our system.
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 have been received by either party from the USDA/RD. Our aim is 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 in our task/transaction management system before proceeding to the next step in the marketing process.
All copies of revised documents will be uploaded into our transaction management system as approved and available to our clients on demand.
We realize that the RD determines list price after the PDP is sent to them. They will email the approval letter, advising us on the list price as well as if they will approve repairs or pay concessions. We view this as our listing approval. We know that they typically will not approve concessions or make repairs unless it is safety issue, broken windows, plumbing or heating repairs. If we get an offer with concessions, we will send it to them for approval. If during the six month period we advise a price reduction, or want to encourage them to accept an offer below the floor, we will need to send an email to USDA requesting approval.
We understand that typically, once the six month marketing period has expired, RD will no longer advise on the list price or offers. 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 that 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.