FAA4.D Other Assets (OTAS) : 03 Other Asset Types : K Real Property : .07 Real Property - Net Proceeds from Sale (CA)
.07 Real Property - Net Proceeds from Sale (CA)
The participant is required to repay benefits when the total of the following are more than the CA resource limit:
The net proceeds from the sale of the property
All other resources at the beginning of the six month exclusion period
The participant is required to repay to FAA the lesser of either of the following:
The amount of CA the participant received, while the sale of property was pending
The amount of net proceeds the participant receives from the sale
NOTE Net proceeds are the amount the participant is entitled to receive after all fees, commissions and liens to parties other than FAA are deducted.
When the property has not been sold within the time specified in the agreement, or eligibility ends for other reasons, close the case allowing for NOAA. Complete an overpayment referral.
NOTE Write the overpayment for the entire amount of benefits issued under the six month exclusion period agreement, and forward to OARC.
Once the lien is filed with the County Recorder, it remains filed on the property until such time as the CA amount issued during the lien agreement period has been repaid to FAA.
The title company processing the sale of the property is notified of the amount needed to release the lien when both of the following have occurred:
The property is in the process of being sold
FAA is contacted by the title company handling the transaction
The Policy Support Team (PST) completes a lien release once the CA amount owed to FAA has been repaid. The PST sends the lien release to the title company. The title company ensures that the lien is released by filing it with the appropriate County Recorder's office.
When the property is sold, the amount of the proceeds remaining, after the lien release payment is deducted, is countable as a resource.
NOTE These procedures apply to both new applications and active cases.
Key the net proceeds on OTAS using the RS Other Assets Code.