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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.


jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.


Like | Dislike | Share | Posted: Fri, 09/12/2008 - 22:34 | Post subject:

apexoffice's picture
apexoffice | Joined: July 9, 2008 08:04 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Sat, 09/13/2008 - 21:05 | Post subject:

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