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U.S. Department of Housing

OMB Approval No. 2502-0328

Title I Claim for Loss

(exp. 1/31/2003)

and Urban Development

Instructions

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.

By__________________________________________________________

Itemized Statements: Documentation of all repossession and preser-

Title_________________________________________________________

vation costs (including hazard insurance premiums, personal property

taxes and site rental), transportation costs, sales commissions, uncol-

Date_________________________________________________________

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

claim.

Previous edition is obsolete

ref. Handbook 1060.2

form HUD-637 (2/2000)

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

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