Voluntary conveyance of real property.

CFR · 2024-01-01 · US · Title 7

(a) (1) An Agency application form; (2) A current financial statement. If the borrower is an entity, all entity members must provide current financial statements; (3) Information on present and future income and potential earning ability; (4) A warranty deed or other deed acceptable to the Agency; (5) A resolution approved by the governing body that authorizes the conveyance in the case of an entity; (6) Assignment of all leases to the Agency. The borrower must put all oral leases in writing; (7) Title insurance or title record for the security, if available; (8) Complete debt settlement application in accordance with subpart B of part 761, subpart F of this chapter before, or in conjunction with, the voluntary conveyance offer if the value of the property to be conveyed is less than the FLP debt; and (9) Any other documentation required by the Agency to evaluate the request. (b) (1) Conveyance is in the Agency's financial interest; (2) The borrower conveys all real property securing the FLP loan; and (3) The borrower has received prior notification of the availability of loan servicing in accordance with subpart C of this part. (c) (2) Before conveyance, the borrower must pay or obtain releases of all junior liens, real estate taxes, judgments, and other assessments. If the borrower is unable to pay or obtain a release of the liens, the Agency may attempt to negotiate a settlement with the lienholder if it is in the Agency's financial interest. (d) (2) The Agency will credit

official document · source cfr-2024 · id 7:§ 766.353