source:
  type: guide
  id: usda-hb-3555-19.3
  authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶19.3 —
    Filing A Loss Claim
  description: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶19.3
    — Filing A Loss Claim.
  coverage_tier: operative
obligations:
- id: usda-hb-3555-19.3-full
  canonical_id: usda-hb-3555-19.3-full
  section: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶19.3 — Filing
    A Loss Claim
  type: do
  tags:
  - regulator-direct
  - usda
  - usda-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶19.3
      — Filing A Loss Claim
    source_class: usda-handbook
    source_url: https://www.rd.usda.gov/sites/default/files/hb-1-3555_consolidated.pdf
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-05-25T14:10:13Z'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '19.3 FILING A LOSS CLAIM All requests for loss claim payments
      will be made through an electronic web submission via USDA Lender Interactive
      Network Connection (USDA LINC) and can be accessed at https://usdalinc.sc.egov.usda.gov/RHShome.do.
      All information entered into the USDA LINC Loss Claim Administration system
      must be supported by documentation in the loss claim file. The servicer is responsible
      for the completeness and accuracy of the loss claim submission. Information
      for gaining access to USDA LINC, submitting loss claims, and uploading loss
      claim documentation can be located in the Loan Servicing section under USDA
      Loss Claim Administration User Guide found at https://www.rd.usda.gov/programs-
      services/lenders/usda-linc-training-resource-library . A. Sold to a Third Party
      or PFS For property that is sold through PFS or to a third party at the foreclosure
      sale, the loss claim must be submitted within 45 days from the PFS closing date,
      foreclosure sale date, or the date the proceeds were received, whichever is
      later. B. Acquired by the Servicer at Foreclosure or Deed-in-Lieu For properties
      that are acquired by the servicer, the servicer must order an appraisal within
      15 days of the foreclosure sale date, acquisition date, or possession of the
      security property and file the loss claim within 60 days of the foreclosure
      sale date, acquisition date, or possession of the security property. In cases
      where a separate legal action is HB-1-3555 (03-09-16) SPECIAL PN 19-5 Revised
      (04-14-25) PN 637 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. necessary to gain possession following
      a foreclosure, the proceeding should be initiated within 30 calendar days of
      the foreclosure sale, redemption period, or other prevailing State law affecting
      acquisition of title. The Agency will determine the value of the property for
      the basis of the loss claim by utilizing the market value of the security property
      through the Property Sale Value Calculator (PSVC). The Agency will apply an
      acquisition and management resale factor to estimate holding and disposition
      costs, based on the most current VA Management and Acquisition Factor (also
      known as the VA Net Value Factor), as announced by the VA in a notice published
      in the Federal Register and found at: https://www.benefits.va.gov/HOMELOANS/servicers_valeri.asp.
      C. Market Value Appraisal The servicer will order an appraisal prepared by a
      licensed or certified appraiser. The appraisal must comply with USPAP and meet
      all the following requirements: x USDA to be named as either the client and/or
      intended user. x The intended use is market value for loss mitigation or asset
      valuation. x State the highest and best use analysis for the subject property.
      The appraiser will use one of the following forms: x Uniform Residential Appraisal
      Report (URAR/Fannie Mae Form 1004 or Freddie Mac form 70) ; x Manufactured Home
      Appraisal Report (Fannie Mae Form 1004C or Freddie Mac Form 70-B); or x Individual
      Condominium Unit Appraisal Report (Fannie Mae Form 1073 or Freddie Mac Form
      465). Along with the above-mentioned appraisal forms, the following should be
      included: x Photos documenting the interior inspection are part of the appraisal
      inspection. The following color photos must be included: x All living spaces
      in the property (i.e. living room, family room, bonus room, dining room/area,
      etc.) x All bedrooms HB-1-3555 (03-09-16) SPECIAL PN 19-6 Revised (04-14-25)
      PN 637 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. x Kitchen x Bathrooms x Basement/crawlspace
      x Laundry room x Mechanicals (furnace/air conditioner unit/water heater/electrical
      panel) x Attic x Garage/sheds x Any/all deferred maintenance items Appraisals
      will be in PDF format with color photos upon submission to USDA LINC. D. The
      Property Sale Value Calculator The Agency has developed a Property Sale Value
      Calculator (PSVC) to determine the estimated sales price for REO loss claims.
      The model coefficients use data on approximately 94,000 historical loss claims
      from the program. The Agency updates the model coefficients on a regular basis
      using actual property sale values acquired through a third-party data provider.
      The Agency adds historical data to the model every year and re-generates coefficients
      to ensure historical relationships between variables represent the most recent
      data available and that the model produces accurate property value estimates.'
  judgment: false
