Homestead protection
When a United States Department of Agriculture farm loan borrower lacks the financial resources to make payments on a delinquent loan, is ineligible for a restructured loan, and is unable to buy out the loan at the net recovery value of the collateral property, Homestead protection permits the borrower to convey the property to USDA in lieu of loan payments. The 1996 farm bill reduces the time period in which the borrower may apply to lease and/or purchase the residence and up to of adjoining land, to within 30 days from acquisition by USDA.
