FSA temporarily suspends loan collections and foreclosures
The USDA announced on Wednesday that it would temporarily suspend collection of past due debts and foreclosures for distressed farmer-borrowers under its loan for agricultural storage facilities and its direct agricultural loan programs managed by the USDA. Farm Service Agency. The move helps more than 12,000 farmers with delinquent loans to the FSA. (DTN file photo)
More than 12,000 farmers and ranchers on Wednesday obtained a reprieve from the USDA pursuing actions against them for loan debts and foreclosures.
The USDA announced on Wednesday that it would temporarily suspend collection of past due debts and foreclosures for distressed farmer-borrowers under its loan for agricultural storage facilities and its direct agricultural loan programs managed by the USDA. Farm Service Agency.
The USDA has said it will suspend “non-judicial foreclosures, debt offsets or wage garnishments,” as well as
suspend the referral of loan foreclosures to the Department of Justice. The USDA also said it would work with federal attorneys to end the judicial foreclosures and evictions that were being pursued. USDA will extend timelines for farmers and ranchers to respond to loan service actions and consider loan deferrals for financially distressed and delinquent borrowers.
The USDA said the action would affect more than 12,000 borrowers, or about 10% of all FSA borrowers. The suspension is in place “until further notice” as the national disaster declaration for COVID-19 remains in place.