source:
  type: regulation
  id: usda-hb-3555-19.4
  authority: USDA Technical Handbook HB-1-3555 §19.4 — Calculating Net Recovery Value
  description: "USDA HB-1-3555 §19.4 (Calculating Net Recovery Value). Gap-fill (verbatim). \n"
obligations:
- id: usda-hb-3555-19.4-0
  canonical_id: usda-hb-3555-19.4-0
  section: USDA HB-1-3555 19.4 — Calculating Net Recovery Value
  description: '19.4 Calculating Net Recovery Value: LCULATING NET RECOVERY VALUE As a part of the loss claim, the
    Agency will reimburse the servicer for the difference between the loss incurred by the servicer and the net
    recovery value of the property, within the limits of the guarantee. Net recovery value is the amount the servi…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.4 — Calculating Net Recovery Value
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: LCULATING NET RECOVERY VALUE As a part of the loss claim, the Agency will reimburse the servicer
      for the difference between the loss incurred by the servicer and the net recovery value of the property, within
      the limits of the guarantee. Net recovery value is the amount the servicer recovers from the sale of a property
      after accounting for all costs. Net recovery value is calculated differently for properties that have been
      sold than for properties that are in the servicer’s inventory at the time the loss claim is filed. For property
      that has already been sold, the actual net recovery value is used. For property that remains in the servicer’s
      inventory, the estimated net recovery value is used. A. Properties Sold at Foreclosure
    drafter_attestation: Verbatim from HB-1-3555 §19.4 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.4-1
  canonical_id: usda-hb-3555-19.4-1
  section: USDA HB-1-3555 19.4 — Calculating Net Recovery Value
  description: '19.4 Calculating Net Recovery Value: 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.4 — Calculating Net Recovery Value
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '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. When the servicer disposed of the property
      at the time of a loss claim submission, the actual net recovery value is calculated as the difference between:
      x The proceeds from the sale and any other amounts recovered, such as recovered escrow funds; and x Allowable
      liquidation and disposition costs. B. Acquired Properties The Agency estimates the net recovery value on unsold
      REO as the difference between: x The estimated value of the property based on the PSVC; x Allowable acquisition
      and management costs associated with liquidation; and x VA Net Value Factor.'
    drafter_attestation: Verbatim from HB-1-3555 §19.4 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
