source:
  type: regulation
  id: usda-7cfr-3555.305
  authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.305 — Voluntary liquidation
  description: '7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.305 Voluntary liquidation.
    Captured section-complete (all subsections verbatim).

    '
obligations:
- id: usda-7cfr-3555.305-full
  canonical_id: usda-7cfr-3555.305-full
  section: 7 CFR §3555.305
  description: 'Voluntary liquidation: The lender must have exhausted the servicing options outlined in &#xA7;&#xA7;
    3555.302 through 3555.304 to cure the delinquency before considering voluntary liquidation. The methods of voluntary
    liquidation of the security property outlined in this section may be used to protect the interests of the…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.305
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: The lender must have exhausted the servicing options outlined in &#xA7;&#xA7; 3555.302 through
      3555.304 to cure the delinquency before considering voluntary liquidation. The methods of voluntary liquidation
      of the security property outlined in this section may be used to protect the interests of the Government.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.305 (whole section) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.305-a
  canonical_id: usda-7cfr-3555.305-a
  section: 7 CFR §3555.305(a)
  description: 'Voluntary liquidation — (a): (a) Eligibility. To be eligible for voluntary liquidation, the following
    conditions must be met: (1) The loan is at least 30 days delinquent or meets the imminent default definition
    as outlined in &#xA7; 3555.303(a)(2); (2) The default was caused by an involuntary reason; and (3) The borrower
    must p…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.305
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(a) Eligibility. To be eligible for voluntary liquidation, the following conditions must be
      met: (1) The loan is at least 30 days delinquent or meets the imminent default definition as outlined in &#xA7;
      3555.303(a)(2); (2) The default was caused by an involuntary reason; and (3) The borrower must presently occupy
      the property except in situations where the borrower does not occupy the property due to the same involuntary
      reason that led to the default.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.305 subsection (a) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.305-b
  canonical_id: usda-7cfr-3555.305-b
  section: 7 CFR §3555.305(b)
  description: 'Voluntary liquidation — (b): (b) Pre-foreclosure or short sale. The borrower may sell the security
    property for a price that represents its fair market value. The sale price, less any reasonable and customary
    sale or closing costs incurred by the borrower, must be applied to the borrower''s account.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.305
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (b) Pre-foreclosure or short sale. The borrower may sell the security property for a price
      that represents its fair market value. The sale price, less any reasonable and customary sale or closing costs
      incurred by the borrower, must be applied to the borrower's account.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.305 subsection (b) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.305-c
  canonical_id: usda-7cfr-3555.305-c
  section: 7 CFR §3555.305(c)
  description: 'Voluntary liquidation — (c): (c) Deed in lieu of foreclosure. The lender may accept a deed in lieu
    of foreclosure if it will result in a lesser loss claim than if foreclosure occurs.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.305
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (c) Deed in lieu of foreclosure. The lender may accept a deed in lieu of foreclosure if it
      will result in a lesser loss claim than if foreclosure occurs.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.305 subsection (c) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.305-d
  canonical_id: usda-7cfr-3555.305-d
  section: 7 CFR §3555.305(d)
  description: 'Voluntary liquidation — (d): (d) Offer by junior lienholder. If a junior lienholder makes an offer
    in the amount of at least the anticipated net recovery value, as calculated in accordance with &#xA7; 3555.353,
    the lender may assign the note and mortgage to the junior lienholder.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.305
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (d) Offer by junior lienholder. If a junior lienholder makes an offer in the amount of at least
      the anticipated net recovery value, as calculated in accordance with &#xA7; 3555.353, the lender may assign
      the note and mortgage to the junior lienholder.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.305 subsection (d) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.305-e
  canonical_id: usda-7cfr-3555.305-e
  section: 7 CFR §3555.305(e)
  description: 'Voluntary liquidation — (e): (e) Other methods of voluntary liquidation. The lender may propose
    other methods of voluntary liquidation that are consistent with this section if the lender fully documents how
    the proposal will result in a savings to the Government. [78 FR 73941, Dec. 9, 2013, as amended at 84 FR 70886,
    Dec. 26, 2…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.305
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (e) Other methods of voluntary liquidation. The lender may propose other methods of voluntary
      liquidation that are consistent with this section if the lender fully documents how the proposal will result
      in a savings to the Government. [78 FR 73941, Dec. 9, 2013, as amended at 84 FR 70886, Dec. 26, 2019]
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.305 subsection (e) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
