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ATTACHMENT 18-B
Disposition (PFS/DIL) Cost Benefit Analysis (Example)
This worksheet is being provided to demonstrate cost savings to the Government, as described under 7 CFR 3555.305. Voluntary liquidation methods must demonstrate the expected cost to the Government to be the same as or less than the cost of foreclosure. Other methods of liquidation must demonstrate how the proposal will result in savings to the Government. These options are appropriate for borrowers who have experienced a verified, involuntary inability to meet their mortgage obligation. Borrowers that have abandoned their mortgage obligation or strategically defaulted may not be eligible. For further eligibility clarification, please refer to the "The Loss Mitigation Guide." Failure to comply with Agency Regulation, Policies and Guidance may result in a reduction or denial of any future Loss Claim. If you need further assistance, please contact the Servicing Office via email at guarantee.svc@usda.gov.
Voluntary/Other Liquidation Method Foreclosure Method
Current Market Value $180,000.00 Current Market Value $180,000.00 ¹ Gross Sales Price $172,500.00 ¹Estimated Liquidation Value $151,200.00 ² Net Sales Proceeds $157,482.63 ³ Actual Net Sales Price % 91.294% Unpaid Principal Balance $203,325.62 Unpaid Principal Balance $203,325.62 Interest to Settlement Date $5,622.79 Interest to FC Sale Date $6,401.16 Escrow Shortage $900.00 Escrow Shortage $1,100.00 FC Cost $1,513.25 FC Cost $2,731.55 Other Cost $129.13 Other Cost $129.13 Total Debt $211,490.79 ²Estimated REO Marketing Cost $24,116.00 Less Net Sales Proceeds $157,482.63 Total Debt $236,291.86
Less Estimated Liquidation Value $151,200.00 Total Estimated Loss Claim $85,091.86 ¹ If no offer is available enter Market Value in lieu of Gross Sales Price. ² If no offer is available reduce Market Value by Management Acquisition Factor (14.95%) and enter in lieu of Net Sales Proceeds. ³ The result of the Net Sale Price divided by the Current Market Value
Total Estimated Loss Claim $54,008.16
¹Equal to 84% of the Current Market Value
²Multiply Estimated Liquidation Value by Management Acquisition Factor (15.95%)
Cost Savings to the Government: $31,083.70
(03-09-16) SPECIAL PN Revised (04-14-25) PN 637 18-57 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts
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CHAPTER 19: LOSS CLAIMS - COLLECTING ON THE GUARANTEE