# 7 CFR § 1955.2: Policy

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.2

## Section

- **Citation:** 7 CFR § 1955.2
- **Heading:** Policy
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 7—Agriculture > Subtitle B—Regulations of the Department of Agriculture > CHAPTER XVIII—RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE > SUBCHAPTER H—PROGRAM REGULATIONS > PART 1955—PROPERTY MANAGEMENT > Subpart A—Liquidation of Loans Secured by Real Estate and Acquisition of Real and Chattel Property

## Text

When it has been determined in accordance with applicable loan servicing regulations that further servicing will not achieve loan objectives and that voluntary sale of the property by the borrower (except for Multiple Family Housing (MFH) loans subject to prepayment restrictions) cannot be accomplished, the loan(s) will be liquidated through voluntary conveyance of the property to Rural Development or by foreclosure as outlined in this subpart. For MFH loans subject to the prepayment restrictions, voluntary liquidation may be accomplished only through voluntary conveyance to Rural Development in accordance with applicable portions of § 1955.10 of this subpart. Nonprogram (NP) loans, except for Community and Business Programs, will be liquidated as provided in subpart J of part 1951 of this chapter, unless specifically referenced in this subpart.
[51 FR 4138, Feb. 3, 1986, as amended at 53 FR 27826, July 25, 1988; 58 FR 52652, Oct. 12, 1993]

## Nearby sections

- [7 CFR § 1955.1 § 1955.1 Purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.1.md)
- [7 CFR § 1955.2 § 1955.2 Policy.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.2.md)
- [7 CFR § 1955.3 § 1955.3 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.3.md)
- [7 CFR § 1955.4 § 1955.4 Redelegation of authority.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.4.md)
- [7 CFR § 1955.5 § 1955.5 General actions.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.5.md)
- [7 CFR § 1955.9 § 1955.9 Requirements for voluntary conveyance of real property located within a federally recognized Indian reservation owned by a Native American borrower-owner.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.9.md)
- [7 CFR § 1955.10 § 1955.10 Voluntary conveyance of real property by the borrower to the Government.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.10.md)
- [7 CFR § 1955.11 § 1955.11 Conveyance of property to Rural Development by trustee in bankruptcy.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.11.md)
- [7 CFR § 1955.12 § 1955.12 Acquisition of property which served as security for a loan guarantee by Rural Development or at sale by another lienholder, bankruptcy trustee, or taxing authority.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.12.md)
- [7 CFR § 1955.13 § 1955.13 Acquisition of property by exercise of Government redemption rights.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.13.md)
- [7 CFR § 1955.15 § 1955.15 Foreclosure by the Government of loans secured by real estate.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.15.md)
- [7 CFR § 1955.18 § 1955.18 Actions required after acquisition of property.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.18.md)
- [7 CFR § 1955.20 § 1955.20 Acquisition of chattel property.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.20.md)
- [7 CFR § 1955.21 § 1955.21 Exception authority.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.21.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.2. Check the current official text before relying on it. Not legal advice.