7 CFR § 3550.205 - Delinquency workout agreements.

---
identifier: "/us/cfr/t7/s3550.205"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 3550.205 - Delinquency workout agreements."
title_number: 7
title_name: "Agriculture"
section_number: "3550.205"
section_name: "Delinquency workout agreements."
chapter_name: "RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "3550"
part_name: "DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; 42 U.S.C. 1480."
regulatory_source: "61 FR 59779, Nov. 22, 1996, unless otherwise noted."
cfr_part: "3550"
---


# 3550.205 Delinquency workout agreements.

Borrowers with past due accounts may be offered the opportunity to avoid liquidation by entering into a delinquency workout agreement that specifies a plan for bringing the account current. To receive a delinquency workout agreement, the following requirements apply:

(a) A borrower who is able to do so will be required to pay the past-due amount in a single payment.

(b) A borrower who is unable to pay the past-due amount in a single payment must pay monthly all scheduled payments plus an agreed upon additional amount that brings the account current within 2 years or the remaining term of the loan, whichever is shorter.

(c) If a borrower becomes more than 30 days past due under the terms of a delinquency workout agreement, RHS may cancel the agreement.