Section 3550.252 - Debt settlement policies(a)Applicability. Debt settlement procedures may be initiated to collect any amounts due to RHS including:(1) Balances remaining on loan accounts after all liquidation proceeds or credits have been applied;(2) Subsidy recapture or grant amounts due; and(3) Unauthorized assistance due.(b)Judgment. RHS may seek a judgment whenever a judgment might enable RHS to collect all or a significant portion of an amount owed.(c)Multiple loans. RHS does not settle debts for one loan while other RHS loans on the same security property remain active.(d)Cosigners and claims against estates. RHS may use any and all remedies available under law to collect from any cosigner and from a deceased borrower's estate.(e)Reporting. RHS will report to the Internal Revenue Service and credit reporting agencies any debt settled through cancellation, compromise, or adjustment.(f)Settlement during legal or investigative action. Cases that are under investigation for fiscal irregularity or have been referred to the Office of the Inspector General, the Office of the General Counsel, or the U.S. Attorney will not be considered for debt settlement until final action by the investigating or prosecuting entity has been taken.(g)Offsets. RHS may request offsets as described in § 3550.210 to collect amounts owed.(h)Escrow funds. At liquidation all funds held in escrow or unapplied funds will be applied against the debt.