source:
  type: regulation
  id: usda-hb-3555-18.9
  authority: USDA Technical Handbook HB-1-3555 §18.9 — Acceleration
  description: "USDA HB-1-3555 §18.9 (Acceleration). Gap-fill (verbatim). \n"
obligations:
- id: usda-hb-3555-18.9-0
  canonical_id: usda-hb-3555-18.9-0
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: CELERATION When a servicer determines that a borrower is unable or unwilling
    to meet loan obligations and there is no reasonable prospect of resolving the delinquency the servicer should
    determine eligibility for streamline options as described below. If the borrower is ineligibl…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §18.9 — Acceleration
    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: 'CELERATION When a servicer determines that a borrower is unable or unwilling to meet loan
      obligations and there is no reasonable prospect of resolving the delinquency the servicer should determine
      eligibility for streamline options as described below. If the borrower is ineligible for the streamline option
      or fails to complete the streamline option in any way, the servicer should initiate liquidation proceedings.
      In all cases, a demand letter should be sent to the borrower within five days of when the borrower missed
      their third consecutive payment and will include the following: x Reason the notice is being sent (e.g., default
      or abandonment). x The action required to cure the default. x A date established to cure the default. A. Final
      Offer (Streamline Option) If the loan meets all the following criteria, the servicer may send a final alternative
      to foreclosure offer with no documentation required from the borrower. The lender should continue to meet
      all foreclosure obligations and timelines during this solicitation. If the borrower responds with the initial
      trial payment, the servicer may place the foreclosure on hold. x The loan is greater than 90 days past due.
      x The loan has an unpaid principal balance of at least $5,000. x The borrower has made at least 12 mortgage
      payments since origination. x The borrower is not currently being reviewed for any loss mitigation. x The
      terms below must result in a reduction of the borrower principal and interest payment by at least 10%. The
      terms of the streamline option shall be as follows: x The interest rate may be modified. x The loan repayment
      period may be extended in one month increments to the maximum term allowable, not to exceed 480 months.'
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-18.9-1
  canonical_id: usda-hb-3555-18.9-1
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: 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 §18.9 — Acceleration
    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. x The borrower must demonstrate a willingness
      and ability to pay by making three consecutive trial payments, all of which must be made in the month they
      are due. x Once the trial is complete the borrower must execute a final modification agreement within 60 days
      of the last trial payment that includes a hardship affidavit attesting that they occupy the property as a
      principal residence and have suffered a financial hardship that created an involuntary inability to afford
      the current mortgage payment. This agreement can be sent after two trial payments are received. Lastly, the
      borrower will not qualify for a streamline option if any of the following exclusions apply: x The borrower
      has had two or more modifications. x The borrower is in bankruptcy proceedings. x The borrower is deceased.
      x A foreclosure sale is completed or scheduled in the next 60 days. x A deed-in-lieu/short sale has been completed.
      x The borrower is involved in any litigation impacting the loan. x There are indications of potential fraud.
      Any streamline option made to the borrower shall have a 30-day expiration date. If the borrower fails to respond
      prior to the expiration of the solicitation, the servicer may, at its discretion, extend that offer an additional
      30 days. If the borrower fails to respond with an initial trial payment or otherwise fails the trial, the
      borrower shall be ineligible for any future final offer under this section.'
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-18.9-2
  canonical_id: usda-hb-3555-18.9-2
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: E FORECLOSURE PROCESS [7 CFR 3555.306] A. Initiation of Foreclosure - Referral
    The servicer must refer the case to an attorney or trustee for foreclosure within 180 days of the due date of
    the last paid installment unless there are legal requirements that cause a delay in the for…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §18.9 — Acceleration
    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: E FORECLOSURE PROCESS [7 CFR 3555.306] A. Initiation of Foreclosure - Referral The servicer
      must refer the case to an attorney or trustee for foreclosure within 180 days of the due date of the last
      paid installment unless there are legal requirements that cause a delay in the foreclosure action. The servicer
      must exercise due diligence and manage the process by ensuring that all required actions are completed timely.
      The Acceptable State Foreclosure Time Frames lists the recommended method of foreclosure and the first public
      action required by law to initiate foreclosure and can be
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-18.9-3
  canonical_id: usda-hb-3555-18.9-3
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: 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 §18.9 — Acceleration
    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. located on the USDA Training and Resource
      Library in the Loan Servicing section under Loss Mitigation found at https://www.rd.usda.gov/resources/usda-linc-training-resource-
      library/loan-servicing. In states where more than one foreclosure method is available, but only one option
      is listed, the Agency selects the method that is most cost effective in reducing legal fees and accrued interest
      expense. The Agency does not intend to prohibit the payment of loss claims where the servicer obtains title
      through a method of foreclosure other than what is recommended. For example, if the recommended foreclosure
      method is non-judicial, but judicial foreclosures are required to preserve the servicer's right to a deficiency
      judgment, the servicer may determine that recovery on a deficiency judgment is expected after considering
      the time and cost of litigation. In such case, the judicial foreclosure method should be considered acceptable.
      Any such decision must be documented and placed in the servicing permanent file. B. The Foreclosure Sale Servicers
      must exercise due diligence in completing the liquidation process. This due diligence should include an estimate
      of the total debt, whether the security value is sufficient to cover that debt, and the potential recovery
      of any deficiency. x Total Debt – Includes unpaid principal, any advances due from the borrower including
      any unrecorded mortgage recovery advance, interest accrual through the liquidation process, and other potential
      costs such as liquidation and real estate owned (REO) expenses. x Security Value – will be based on the current
      market value of the property in “as is” condition with a 90-120-day marketing time frame. If security property
      is inaccessible, the valuation will be based on exterior inspection only. If a significant (20% or more) decline
      from the value established at loan origination and the pre-foreclosure valuation is evident, the servicer
      is encouraged to review the value determination in accordance with established quality controls and be prepared
      to support the decline in value. x Recovery Potential – consider the borrower’s other assets, ability to pay
      the deficiency, and other sources of recovery such as insurance claims or pending litigation. x Foreclosure
      Bid – the servicer should consider state statutory requirements and the relationship of the outstanding debt
      and potential REO costs to the market value of the property. When the total debt, including the cost of acquiring,
      managing, and disposing of REO property, is greater than the gross proceeds expected from a foreclosure sale
      at the market value of the security property and
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-18.9-4
  canonical_id: usda-hb-3555-18.9-4
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: 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 §18.9 — Acceleration
    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. potential recovery from other sources,
      third-party bidding is encouraged by entering a foreclosure sale bid less than the value of the property.
      Servicer should use the USDA Individual State Based Bidding Chart, with the goal of avoiding REO and its associated
      management and disposition costs. This chart can be located on the USDA Training and Resource Library in the
      Loan Servicing section under Loss Mitigation found at https://www.rd.usda.gov/resources/usda- linc-training-resource-library/loan-servicing.
      The Agency does not need to concur on foreclosure bids. x Auction Services – servicers are encouraged to use
      non-affiliated auction companies during the foreclosure process including marketing the property and bidding
      services. The Agency will reimburse servicers for auction service fees in an amount not exceeding five percent
      of the property net sales price when the property is sold to a third party. Properties must be marketed for
      a minimum of 15 days prior to the scheduled sale date and sold for an amount equal to or greater than the
      “Net Value Bid.” C. Reinstatement of Account Unless required otherwise by state statute, the servicer may
      reinstate an accelerated account if the borrower meets all the following conditions: x Pays the total amount
      delinquent, including protective advances, accrued interest, any foreclosure related costs, and other expenses
      incurred by the servicer in a lump sum. x Has the documented ability to resume scheduled payments on the loan.'
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-18.9-5
  canonical_id: usda-hb-3555-18.9-5
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: NAGING THE FORECLOSURE PROCESS [7 CFR 3555.306] The servicer must manage the
    foreclosure process so that the property is liquidated in a cost effective, expeditious, and efficient manner.
    Servicers must respond to a request for documentation from an attorney or trustee within fiv…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §18.9 — Acceleration
    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: NAGING THE FORECLOSURE PROCESS [7 CFR 3555.306] The servicer must manage the foreclosure process
      so that the property is liquidated in a cost effective, expeditious, and efficient manner. Servicers must
      respond to a request for documentation from an attorney or trustee within five business days. A. Acceptable
      Foreclosure Time Frames Foreclosure must be initiated within 90 days of the date the decision to liquidate
      is made unless the foreclosure has been delayed by law or an alternative to foreclosure is recommended to
      resolve the delinquency. Initiation of foreclosure begins with the first public action required by law, such
      as filing a Complaint or Petition, recording a Notice of Default, or publication of a Notice of Sale. The
      Acceptable State Foreclosure Time
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-18.9-6
  canonical_id: usda-hb-3555-18.9-6
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: 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 §18.9 — Acceleration
    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. Frames lists the acceptable timeframe
      to complete a foreclosure by state and can be located on the USDA Training and Resource Library in the Loan
      Servicing section under Loss Mitigation found at https://www.rd.usda.gov/resources/usda-linc-training-resource-
      library/loan-servicing. These time frames are measured from the first legal action to the foreclosure sale
      date. The Agency foreclosure time frames start with the date of the first legal action required by law, ends
      with the foreclosure sale date, and does not include post-sale redemption periods or sale confirmations. x
      Redemption Period – since redemption periods may be adjusted under state laws based on the circumstances surrounding
      a property, such as the amount of unpaid principal still owed or the occupancy status of the property, reasonable
      time frames for redemption periods and sale confirmations should be established on a case-by case basis in
      accordance with state law. Reimbursement of accrued interest may be reduced in accordance with Chapter 19
      of this Handbook for each day that the foreclosure continues past the prescribed time frame unless the servicer
      presents a valid reason that justifies the delay. x Processing Delays – servicers must document any delays
      to the foreclosure timeline when submitting the loss claim package. Acceptable delays can include bankruptcy
      petitions filed after foreclosure initiation, contested foreclosures, and court scheduling delays or delays
      in obtaining service. x Chapter 7 Bankruptcy – Servicers may be authorized a 90-day extension to the allowable
      time frame for compliance with state law when a Chapter 7 bankruptcy delays the completion of foreclosure.
      To determine the impact of a bankruptcy filing on the foreclosure time frame, the total number of days from
      first action to foreclosure sale will be calculated. The total number of days between the bankruptcy filing
      date and the date of bankruptcy release or dismissal for each applicable bankruptcy case will then be subtracted
      from the total number of foreclosure days. The resulting number of days will be compared to the Agency foreclosure
      time frame plus an automatic 90-day extension to determine if the time frame was met. x Chapter 13 Bankruptcy
      – Additional time allowed for a Chapter 13 bankruptcy delay shall not exceed 90 days from the date the payments
      under the bankruptcy plan became 60 days delinquent. The servicer must make prompt and accurate notification
      to the bankruptcy court and closely monitor the payment required by the bankruptcy court. If the borrower
      becomes 60 days delinquent in payment under the Chapter 13 plan, the servicer will ensure prompt legal action
      is taken to resolve. Any delay beyond 90 days from the date the account became 60 days
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-18.9-7
  canonical_id: usda-hb-3555-18.9-7
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: 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 §18.9 — Acceleration
    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. delinquent under the terms of the bankruptcy
      plan must be supported by documentation. x Prompt Referral – Servicers must exercise reasonable due diligence
      requirements by resolving a dismissal of the bankruptcy, termination of the automatic stay, or trustee abandonment
      of all interest in the secured property. The servicer’s loss claim documentation must demonstrate the case
      was promptly referred to the foreclosure attorney after bankruptcy filing. Any delay beyond 90 days from the
      date of the bankruptcy release must be supported by documentation. Failure to submit the documentation supporting
      the extended foreclosure timeframe as described in Chapter 19 of this Handbook will result in denial of additional
      accrued interest. B. Acceptable Liquidation Fees and Costs Agency regulations authorize the reimbursement
      of actual liquidation fees and costs that are paid by the servicer for liquidated loans that result in a loss
      to the servicer within the limits of the guarantee. The Acceptable State Liquidation Costs and Fees will be
      utilized in determining allowable reasonable and customary attorney fees for foreclosure, deed-in-lieu of
      foreclosure and bankruptcy. These costs and fees can be located on the USDA Training and Resource Library
      in the Loan Servicing section under Loss Mitigation found at https://www.rd.usda.gov/resources/usda-linc-training-resource-
      library/loan-servicing. Fees higher than the published amounts may be appropriate, in cases such as contested
      foreclosures, required probate procedures, etc. Any reimbursement of fees over the allowable costs are subject
      to review by the Agency on a case-by-case basis. Justification for higher fees must be documented in the file.
      It is important to make the distinction between attorney/trustee fees and attorney/trustee costs. Typically,
      the fee for the service performed by the attorney is listed separately on the attorney invoice from the actual
      costs involved in the liquidation proceedings. A complete list of allowable liquidation costs would not be
      practical since procedural requirements vary by jurisdiction. Generally, the Agency will reimburse a servicer
      for costs, which must be paid to public officials such as sheriffs, clerks of court or recorders of deeds,
      as well as costs, which are required by law (i.e., private service of process and required publications).
      In-house expenses of the servicer will not be allowed during the liquidation process. Employee salaries, staff
      attorneys and overhead charges are considered examples of in- house expenses. Overhead expenses include, but
      are not limited to, items such as telephone calls, photocopying charges, overnight mail fees and postage (not
      including certified or registered mailings required by law). Typical overhead costs are inherent to
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-18.9-8
  canonical_id: usda-hb-3555-18.9-8
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: 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 §18.9 — Acceleration
    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. the foreclosure process and payment of
      these expenses is not reimbursable. Outsourcing of services, such as document preparation services, are customary
      in the industry and are also considered as attorney overhead. These fees are allowed as a separate expense
      only if the attorney fee is reduced in a proportionate amount to the document preparation fee that is charged.
      Example: x State = Tennessee x Acceptable Foreclosure Attorney Fee = $600 $425 Attorney fee invoiced $125
      Outsourced Document Preparation Fee $600 Total of fees charged In the above example, the foreclosure attorney
      has chosen to outsource a portion of his service to a contractor. The total fee charged to the servicer is
      the same as if the attorney firm had performed this function. This is considered an acceptable fee that is
      eligible for reimbursement. C. Interrupted Foreclosure Proceedings: If a foreclosure proceeding is interrupted
      due to a bankruptcy filed by the borrower, or if a deed-in-lieu of foreclosure or pre-foreclosure sale is
      accepted prior to the completion of the foreclosure: x 75% of the allowable attorney fee and all actual foreclosure
      costs incurred will be reimbursed. x In addition, 100% of allowable foreclosure attorney fees and costs incurred
      after the bankruptcy stay is lifted will be reimbursed if state statute requires that the foreclosure be restarted
      from the beginning. x If state statute does not require that the foreclosure be restarted from the beginning,
      reimbursement of all foreclosure attorney fees incurred both before and after the bankruptcy is limited to
      the amount listed on the Acceptable State Liquidation Costs and Fees and can be located on the USDA Training
      and Resource Library in the Loan Servicing section under Loss Mitigation found at https://www.rd.usda.gov/resources/usda-linc-training-resource-library/loan-
      servicing.'
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-18.9-9
  canonical_id: usda-hb-3555-18.9-9
  section: USDA HB-1-3555 18.9 — Acceleration
  description: '18.9 Acceleration: 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 §18.9 — Acceleration
    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. The Agency will not reimburse any attorney
      fees or costs incurred for a prior liquidation action that has been reinstated by the borrower or for which
      the foreclosed property is redeemed. Attorney fees and costs should be included in the amount collected from
      the borrower with the reinstatement or foreclosure redemption. The foreclosure fees in Acceptable State Liquidation
      Costs and Fees referenced above, lists the attorney or trustee fee limits allowed for each Agency recommended
      method of foreclosure. In states where more than one foreclosure method is available, the limits listed are
      based on the method that is most cost effective in reducing legal fees and interest expense. The Agency does
      not intend to prohibit the payment of attorney fees and costs where the servicer obtains title through a method
      of foreclosure other than what is recommended. However, the Agency must determine whether the foreclosure
      method chosen by the servicer was in the best interest of the government. For example, the recommended foreclosure
      method in some states is non-judicial; however, judicial foreclosures are required to preserve the rights
      of a deficiency judgment. If the servicer determines that the recovery of a deficiency judgment is expected,
      the foreclosure method should be considered acceptable and reasonable attorney fees and costs reimbursed within
      the limits of the guarantee. Any such decision must be documented and placed in the servicing permanent file.
    drafter_attestation: Verbatim from HB-1-3555 §18.9 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
