Property Inspections
Rural/HUD properties have strict federal guidelines. DAC Properties has agents readily available to navigate the regulations and stay compliant while keeping our eyes on the end goal: maximizing profitability. We understand the USDA/RD requirement to perform property inspections every 30 days or more, but Damien Coleman and DAC Properties are committed to attending to this task no fewer than every 7-10 days, depending on the client’s requirements.
Eviction Proceedings
Additional sensitivity and diplomacy is required when a property is occupied. The fact that eviction proceedings will be initiated immediately remains the same. We will assist, as required, in ensuring that all activities comply with the requirements of PTFA. We always hope that a voluntary vacate can be secured via relocation assistance during the eviction proceedings. With care and respect to the occupant, we do our best to ensure a peaceful resolution for our client.
Property Disposition Plan (“PDP”) Submission
A copy of each PDP document will be uploaded into our system and is accessible by our clients on request. Upon direction, the completed PDP to USDA/RD will be documented with approval and submission dates and added to the property record.
Property Disposition Plan (“PDP”) Approval
We realize the USDA/RD does not always respond. If no response is received within five business days after submission, the plan will most likely be implemented and approved. We count on the client to confirm on the sixth day after submission to ensure that either party has received no request for clarification or additional information from the USDA/RD. Hopefully, this can be wrapped up, including any requests for clarification or additional documentation, within two business days. We understand that sometimes additional values, inspections, and other actions may push the timeline further.
Revisions to Property Disposition Plan (“PDP”)
All revised document copies will be available to our clients on request. Our clients can check the status of their property on any device at any time during the process.
USDA/RD Properties & Claims and MI Properties
RD determines the list price after the PDP is sent to them. They will email the approval letter, advising us on the list price and whether they will approve repairs or pay concessions. We view this as our listing approval. They typically will not approve concessions or make repairs unless it is a safety issue, such as broken windows, plumbing, or heating repairs. If we get an offer with concessions, we will send it to them for approval. If, during the six months, we advise a price reduction or want to encourage them to accept an offer below the floor, we will send an email to USDA requesting approval.
We understand that, typically, once the six-month marketing period has expired, RD will no longer advise on the list price or offers. Price reductions and offers from this point become CHFA’s decision. If a property goes under contract close to the end of the six-month marketing period, we will strive to get approval from RD to extend the Claim File Date until after the REO Closing.
If a property sells within the six-month marketing period, we know the claim is due within 30 days of the REO sale date. We also understand that all management fees, homeowners’ assistance down payment programs, RD Guarantee Fees, and gift funds are not reimbursable on the loss claim. If the property has a sump pump, we will ensure it is in good working condition. We will also ensure that steps are taken to preserve and protect the property as necessary.