USDA Rural Development loans have unique foreclosure protections including mandatory loss mitigation, moratorium protections, and subsidized repayment options. Learn your USDA-specific rights and how to stop a USDA foreclosure — plus special servicing requirements not available for conventional loans.
Get Free Case ReviewUSDA loans (Section 502 Guaranteed and Direct) have unique foreclosure protections: mandatory loss mitigation review before foreclosure referral (servicers must evaluate borrowers for all available USDA loss mitigation options), moratorium protections during natural disasters and emergencies, subsidized repayment options for Direct loans (including payment subsidy that can reduce payments to as low as 1% interest), a 90-day pre-foreclosure notice requirement, and special servicing transfers to the USDA Centralized Servicing Center. The USDA also operates a Special Loan Servicing option that can cure defaults through re-amortization or deferred payments. Unlike conventional loans, USDA-guaranteed loans require the servicer to exhaust all loss mitigation options before accelerating the loan. Key defenses: failure to offer USDA-specific loss mitigation, improper servicing transfer, moratorium violations, and failure to follow USDA Handbook HB-1-3555 procedures. See also: VA Foreclosure and FHA Foreclosure.
USDA loans have protections conventional loans don't. We'll help you assert your rights under USDA regulations.
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