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As a part of the loss claim, the Agency will reimburse the servicer for the difference between the loss incurred by the servicer and the net recovery value of the property, within the limits of the guarantee. Net recovery value is the amount the servicer recovers from the sale of a property after accounting for all costs. Net recovery value is calculated differently for properties that have been sold than for properties that are in the servicer’s inventory at the time the loss claim is filed. For property that has already been sold, the actual net recovery value is used. For property that remains in the servicer’s inventory, the estimated net recovery value is used.
A. Properties Sold at Foreclosure
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When the servicer disposed of the property at the time of a loss claim submission, the actual net recovery value is calculated as the difference between:
x The proceeds from the sale and any other amounts recovered, such as recovered
escrow funds; and
x Allowable liquidation and disposition costs.
B. Acquired Properties
The Agency estimates the net recovery value on unsold REO as the difference between:
x The estimated value of the property based on the PSVC;
x Allowable acquisition and management costs associated with liquidation; and
x VA Net Value Factor. 19.5 AGENCY REVIEW