USDA Temporarily Suspends Some Past-Due Collections and Foreclosures

WASHINGTON, DC – USDA has announced a temporary suspension of past-due debt collections and foreclosures for distressed borrows under the Farm Storage Facility Loan and Direct Farm Loan programs administered by the Farm Service Agency (FSA). According to a press release, USDA will temporarily suspend non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the Department of Justice; and USDA will work with the U.S. Attorney’s Office to stop judicial foreclosures and evictions on accounts that were previously referred to the Department of Justice. USDA has also extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers. According to USDA data, more than 12,000 borrowers—approximately 10% of all borrowers—are eligible for the relief announced today. Overall, FSA lends to more than 129,000 farmers, ranchers, and producers.
(SOURCE: All Ag News)