The transcript of the video follows below for further review.
Dealing with the idea that you might be facing loan default can be terrifying. Our skilled HUD debt attorneys help clients understand all facets of their HUD loan debt and deploy proven solutions. You should never face loan default alone. Our HUD attorneys aggressively fight for resolution of your loan default.
HUD refers money owed to the Department of the Treasury (DOT) for offset and Cross-Servicing collection by the time they're 180 days delinquent, unless the debt is ineligible for referral. Debts or borrowers which can be ineligible for referral consist of: bankrupt debtors, borrowers with pending appeals, money owed referred for litigation, and money owed being collected via AWG.
The application of penalties and administrative costs to eligible delinquent debts is set forth in the Debt Collection Act of 1982. Penalty and administrative costs must be assessed when a debt turns ninety days delinquent. A debtor may also avoid from those fees by making payments on a HUD authorized voluntary repayment arrangement.
Usually, the rate is 6 percent. The FOC may determine a lesser rate. The penalty charge is calculated on the full debt balance, apart from any preceding penalties. A penalty should be assessed yearly so long as the debt stays delinquent.
Administrative costs are those fees related to processing and managing delinquent debts (e.g., salaries, workplace space, systems fees, contract aid, and system). The appropriate administrative fee costs will be decided by the Director of the FOC primarily based on an evaluation of the FOC’s actual team of workers and overhead prices. An administrative fee must be assessed yearly to each eligible delinquent debt.
The FOC assesses penalty charges and administrative costs to money owed automatically and electronically through DCAMS. Particular eligibility standards are programmed into DCAMS based on the DOT’s suggestions.
The debtor must receive notice prior to the assessment of any penalty and administrative costs. For each debt, HUD must transmit a letter that informs the debtor that HUD will assess penalties and administrative expenses if the debt becomes ninety days or more delinquent.
The HUD Attorneys in our office want to help you resolve your HUD debt situation. No matter how difficult your circumstances may seem, the right HUD Attorney can assist you. We understand that you may have questions regarding a wide range of federal agency matters, including how to respond to an HUD demand letter, a notice of Administrative Wage Garnishment, and a Notice of Intent to Collect by Treasury Offset (NOI). Our HUD Attorneys can explain all of these topics and more. We urge you to review our disclaimer & blog to learn more about subjects that may be confusing to you and to contact us right away if you have specific questions relating to your unique circumstances. We look forward to helping you during this difficult and stressful period of your life.
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Helping provide real solutions to individuals who are facing HUD loan problems. Contact one of our experienced HUD Attorneys and Federal Agency Practitioners today for a Free Case Evaluation - (888) 756-9969.