An account is past due if the scheduled payment is not received by the due date, or as authorized by State law.

(a) Late fee. A late fee will be assessed if the full scheduled payment is not received by the 15th day after the due date.

(b) Liquidation—(1) For borrowers with monthly payments. The account may be accelerated without further servicing when at least 3 scheduled payments are past due or an amount equal to at least 2 scheduled payments is past due for at least 3 consecutive months. In such cases RHS may pursue voluntary liquidation and foreclosure.

(2) For borrowers with annual payments. The account may be accelerated without further servicing when at least 3⁄12 of 1 scheduled payment has not been received by its due date. In such cases, RHS may pursue voluntary liquidation and foreclosure.

(3) Subsidy recapture. Acceleration under this section will take into account any subsidy recapture due under §3550.162.

[61 FR 59779, Nov. 22, 1996, as amended at 77 FR 3379, Jan. 24, 2012]