Common use of Liquidation method Clause in Contracts

Liquidation method. If the seller chooses the liquidation method, the servicing agent will: (A) Submit a liquidation plan to the Agency within 120 days from the missed payment for approval prior to any liquidation action. The Agency may require and pay for an appraisal prior to approval of the liquidation plan. (B) Complete liquidation within 12 months of the missed installment un- less prevented by bankruptcy, redemp- tion rights, or other legal action. (C) Credit an amount equal to the sale price received in a liquidation of the security property, with no deduc- tion for expenses, to the principal bal- ance of the land contract. (D) File a loss claim immediately after liquidation, which must include a complete loan ledger. (E) Base the loss claim amount on the appraisal method if the property is reacquired by the seller, through liq- uidation.