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USDA Rural Development Loan Payoff

My USDA Rural Development loan principal and interest balance has been paid, I now longer owe  but there is a Sudsidy/Recapture of approximately $55,000 owed to USDA Rural Development. Based on the information I was provided, I would be entitled to a 25% discount if I payoff the loan through Refi or own cash. The house is currently worth approximately $70,000 now.  Would I have to pay more than the previously stated Sudsidy/Recapture account? 
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February 28 - US
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Answers (1)

I haven't dealt with paying off a subsidy/recapture amount, but any time paying off debt through a mortgage occurs a payoff statement is obtained.  So in your situation a payoff for the subsidy/recapture would be ordered, and I suspect the amount will reflect the 25% discount you would get.  There may even be two amounts listed - one if you paid it off through the sale (which I suspect wouldn't get you the 25% discount) and then the 25% discounted one if it's being paid off with you still retaining the property (i.e. refinancing or just using your own cash).  It's a good question, and one you could contact USDA directly on.  Since it sounds like you went through the Direct version of USDA, http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=pageLoad&requestInfo=DirectContactInfo&NavKey=contact@11 is the link to the USDA Direct offices contact info.
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February 28
 
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