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Post Posted: Fri Sep 12, 2008 4:21 pm    Post subject: recapture

My mother bought this house from USDA/RHS. She became very ill and told me that she wished there was a way I could keep the house if anything happened to her. Well, she passed away 12/11/2002. I didn't know what to do, so I called the rural housing and told them what she wanted to take place, and what did I need to do to keep the house. They said, "just keep making the payments, as long as someone is making the payments it will be fine." They also let me know that my payments would go up, because of my income, and they did...from $113 to $370. I just made my last payment last month and today I get a letter about loan recapture. If that is for refinancing or selling your home, why would they be sending it to me, when I have no plans to do either.


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Icon Mini Profile jameshogg

Joined: 20 Dec 2005

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Post Posted: Fri Sep 12, 2008 10:34 pm    Post subject:

Hi Pjm,

Welcome to forums.

I think you haven't refinanced the loan and that's the reason why the USDA wants you to do it now. The USDA has sent the loan recapture letter to you just because they want you to have your name on the loan as because the mortgage is still in you mother's name.

Icon Mini Profile apexoffice

Joined: 09 Jul 2008

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Location: Atlanta, GA
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Post Posted: Sat Sep 13, 2008 9:05 pm    Post subject:

Hi pjm,

If the orginal loan contained any type of financial assistance by the USDA/RHS, it is most likely the original security deed included a rider for recapture of those monies. Since you made the last payment, the financial assistance paid by the USDA will now be due. It would have also been due at any time that the property was sold or refinanced. I hope this helps.

Benjamin Smith
Atlanta Area Appraiser


Post Posted: Fri Oct 09, 2009 8:09 am    Post subject: selling usda/rhs home

My question is this: I bought a usda RHS home back when my kids were little and now that they are grown up I want to sell it. Someone told me that you can't sell your house with these types of loans? I'm scared because I don't want to be stuck in a house that I don't have a need for anymore and I'm scared to call usda because of what they might tell me to do.
Icon Mini Profile jenkin7

Joined: 04 Jun 2007

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Location: Hawaii
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Post Posted: Sat Oct 10, 2009 12:56 am    Post subject:

Hi Beth,

There are no reasons why you would not be able to sell your USDA RHS home. If your family needs a larger home to live, why would USDA prevent you from moving into a home with more space? I have not heard of any such rule. You can definitely look for a larger home and sell the existing one. However, you must pay off the entire outstanding balance of the existing USDA loan when you sell off the property.


Post Posted: Wed Nov 03, 2010 6:16 am    Post subject: Equity and refnancing

I have lived in my home for 15 years now and it was financed through usda. I want to know if I can now refinance through usda and start over. I have had some financial difficulty and have made some late payments. I need to consilidate some bills and get back on track. I would like however to remain in contract with usda. Is anything like this possible?
Icon Mini Profile adonis

Joined: 22 Oct 2005

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Post Posted: Thu Nov 04, 2010 12:35 am    Post subject:

Welcome Tessie,

If you have equity in your property, you'll be able to refinance your USDA home loan and start all over again. You should contact your present USDA lender and apply for a mortgage refinance.

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