Form Hud-637 - Title I Claim For Loss - U.s. Department Of Housing And Urban Development


U.S. Department of Housing
OMB Approval No. 2502-0328
Title I Claim for Loss
(exp. 1/31/2003)
and Urban Development
Office of Housing
Federal Housing Commissioner
Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect
this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.
This information is being collected to permit more efficient risk management of the Title I loan portfolio as well as facilitate claims processing for loan
defaults. The information provides a more comprehensive basis for evaluating Title I lender underwriting practices and thereby improving risk management
of the loan portfolio and also enhances management’s ability to determine appropriate policy changes affecting the Title I portfolio as a whole. Responses
are required in order to obtain benefits. No assurance of confidentiality is provided.
Sensitive Information: The information collected on this form is considered sensitive and is protected by the Privacy Act. The Privacy Act requires that
these records be maintained with appropriate administrative, technical, and physical safeguards to ensure their security and confidentially. In addition,
these records should be protected against any anticipated threats or hazards to their security or integrity which could result in substantial harm,
embarrassment, inconvenience, or unfairness to any individual on whom the information is maintained.
This package contains three sets of forms: the Transmittal (Part 1),
Bankruptcy/Decedent Estate: When the lender has timely infor-
the Application Voucher (Part 2), and the Worksheet (Part 3). Please
mation that the borrower is involved in a bankruptcy proceeding or is
read these instructions, then separate the three Parts and complete
deceased, a proof of claim must be filed with the bankruptcy or
them. Keep a copy of Part 1, a copy of Part 2, and a copy of Part 3. Send
probate court having jurisdiction.
The proof of claim must be
originals to:
assigned to the United States of America prior to filing an insurance
claim. However, a proof of claim need not be filed if the bankruptcy
U.S. Department of Housing and Urban Development
court indicates that the borrower has no assets, or if the lender
Financial Operations Center
Attn: Title I Claims
52 Corporate Circle
determines that there will not be a probate proceeding. Documen-
Albany, NY 12203
tation of the reason why no proof of claim has been filed must
accompany the insurance claim.
Time Requirements: A claim must be filed no later than 9 months after
Form of Assignment: All notes, security instruments, judgments
the date of default for a property improvement loan. A claim for a
and proofs of claim must be assigned to the United States of
manufactured home purchase loan (including lots and combination
America. The assignment must appear on the note or other instru-
loans) must be filed within 3 months after the sale of the property
ment being assigned, or on an attachment to the note or other
securing the loan, but no later than 18 months after the date of default.
instrument. The assignment must be in the following form, unless
Each claim submitted after the expiration of the maximum claim filing
this form is not valid or generally acceptable in the jurisdiction where
period must be accompanied by a written explanation of the reasons for
the property is located:
the late submission.
Accuracy and Completeness: All applicable spaces on the Transmit-
All right, title, and interest of the undersigned is hereby assigned
tal and the Application Voucher must be completed and any omissions
(without warranty, except that the loan qualifies for insurance) to
or incomplete items must be explained. Both forms must be signed and
the United States of America (U.S. Department of Housing and
dated by an authorized official of the lending institution, and must be
Urban Development).
accompanied by the complete loan file pertaining to the loan transaction.
The original note, security instrument and any related documents must
(Name of Financial Institution)
be submitted with the claim, except where State or local law requires the
lender to retain these documents.
Itemized Statements: Documentation of all repossession and preser-
vation costs (including hazard insurance premiums, personal property
taxes and site rental), transportation costs, sales commissions, uncol-
lected court costs, attorney's fees, recording costs and other applicable
expenses must be furnished with the claim submission. If the claim
involves a manufactured home lot loan or combination loan classified as
Please Note that filling in the information on this sample form does
realty, any expenses for real estate taxes, special assessments, hazard
not constitute an assignment. The above is intended to be used only
insurance premiums or transfer taxes must also be documented. In
as a guide.
determining the best price obtainable on a repossessed manufactured
Refinanced Loans: Copies of the note, security instrument and all
home (line 20d on the Application Voucher), the cost of repairs to make
other documents pertaining to the original loan must be retained in
the home marketable and the cost of delivery and set-up on a new site
the loan file for the refinanced loan, and must accompany an
(transportation NTE $1,000 per module) may be deducted from the
insurance claim on the refinanced loan.
actual sales price only if itemized statements or invoices for these costs
are furnished.
Payments Received after Filing the Claim: If the borrower sends
a payment to the lending institution after the insurance claim has
Secured Loans: Any security interest in the loan must be recorded in
been filed, send the payment with full identification to:
the manner specified by applicable State law in the jurisdiction where the
property is located. If the lender's security interest has been recorded,
Title I Notes
an assignment of this security interest to the United States of America
P. O. Box 105664
Atlanta, GA 30348
must be recorded in the same jurisdiction prior to filing an insurance
Previous edition is obsolete
ref. Handbook 1060.2
form HUD-637 (2/2000)


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