Mississippi Administrative Code
Title 25 - Military and Veterans - Veterans' Home Purchase Board
Part 202 - Loan Policies
Chapter 13 - Policy for Handling Loss Draft Funds
Rule 25-202-13.6 - Completion Escrow Money
Current through September 24, 2024
Completion escrow money is money that the seller agrees to pay at the sale of the home for repairs that need to be completed in order to close the loan. It is rare that the agency receives these funds. When we do, the VA requires 1 1/2 time the estimated cost of repairs to be paid. Once the work is completed, the actual cost of the repairs will then be paid from this money collected at closing and any difference would be returned to the seller who funded the money to start this process. This money is recorded on the Loan Servicing system and is recorded in the Loss Draft account at the bank, on the Index Cards and on the Loss Draft spreadsheet maintained by the Accounting Department. The process is as follows:
A. A deposit to the Loss Draft is made when the agency originally receives the money
B. An inspection is done to ensure completion of work once repairs are made
C. Agency pays the contractor from these funds
D. Any remaining balance is paid back to the person who originally paid the funds
The monies are accounted for in the same manner as the Loss Draft monies.
Miss. Code Ann. § 35-7-7
