If you receive a HUD demand letter you have a limited amount of time to submit a HUD settlement by compromise and attempt to resolve the debt. The Debt Collection Improvement Act (“DCIA”) requires that federal agencies such as HUD should refer all eligible delinquent debts to the Department of Treasury (“DOT”) by the time a debt is 180 days delinquent. HUD automatically refers eligible debts to the DOT prior to 180 days after the initial HUD demand letter, and HUD’s effort to collect a debt via voluntary payment agreement is normally limited to this time period. Protect Law Group
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