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b. Maximum Claim Filing Deadline (05/09/2022)
i. Definition
The Date of Default is 30 Days after the due date of the first unpaid installment.
Funds received by the Lender that equal a full installment, when applied to the overdue installments in the order in which they became due, advance the date of the oldest unpaid installment.
ii. Standard
The Lender must file a claim not later than three months after the date of sale of the Property securing the Loan, but not to exceed 18 months after the date of Default.
iii. Exception to Claim Filing Deadline
Exceptions to the maximum claim filing period are allowed when the Lender can document that the length of delay was reasonable based on the following:
• litigation related to the Loan, including bankruptcy, if initiated prior to the end of the claim filing deadline. The claim must be filed within three months of the end of the litigation;
• management control of the Lender is assumed by a federal or state agency (e.g., the Federal Deposit Insurance Corporation (FDIC));
• the Borrower experiences a financial hardship directly attributable to a major disaster declared by the President of the United States, provided the claim is filed no later than 12 months after the date of Default;
• the Lender can show clear evidence as to why the delay in claim filing was in the interest of HUD; or
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IV. CLAIMS AND DISPOSITION C. Title I Claims
2. Title I Claims for Manufactured Homes
• military service by the Borrower as defined in the most recent available SCRA, as adopted by HUD. Any period of military service after the date of Default is excluded in computing the maximum time period for filing an insurance claim.