**[FEDERAL MARSHAL SALE FACT SHEET-WESTERN]{.underline} Revised
(01-27-06)**

**OVERVIEW:**

The United States of America, acting through Rural Development, United
States Department of Agriculture (USDA), provides loans to clients to
purchase properties that meet RHS eligibility requirements. If the
borrower is unable to comply with the repayment requirement of the
mortgage, Rural Development is required to foreclose on the property.
These properties are foreclosed on through the Federal Court System and
the sales are held by the United States Federal Marshals. The United
States Attorney's Office will advertise the sale date and sale
requirements in local newspapers through assigned private counsel. In
addition, in an effort to notify potential buyers, the USDA, Rural
Development has established a website. For information on upcoming
sales, interested parties can locate properties at
[[www.resales.usda.gov.]{.underline}](http://www.resales.usda.gov./)
Each property will list a contact person that handles that property for
Rural Development.

**FREQUENTLY ASKED QUESTION (FAQ)**

***Question*:** How do I bid on these properties; what is the procedure?

**Answer:** You will need to know in advance the maximum amount you are
willing to pay for the property, and have available AT THE SALE, 10% of
that amount, in hand, in the form of a Certified Check, Cashier's Check,
or Bank Money Order. Cash, personal checks or bank letters of credit
will NOT be accepted. You cannot go to a bank after the sale to obtain
additional funds. The check or money order should be made payable to
yourself. If you are the successful bidder, we will show you how to
endorse the check to the Marshal. If you are bidding on more than one
property, you will need a check for each property. You cannot use one
(1) check to cover two (2) sales. It is your decision as to the
denominations of the checks. In some cases, a high bidder will have the
full 10% of what he intends to bid, and if he gets the property for less
than he intended, the additional amount of the certified check will come
off the total purchase price. In some cases, buyers prefer to have
numerous denominations of checks so they can "add up to" the 10% they
bid. Either is acceptable. If you overpay the 10% deposit and then
default, the Marshal will retain the 10% and refund the overage.

***Question*:** Do I get free and clear title to the property?

**Answer:** The terms of sale, which are read by the Federal Marshal
before bidding begins states, "The successful bidder takes the real
estate subject to, and shall pay all taxes, water rents, sewer charges,
municipal claims, and other charges and liens not divested by the sale,
and must also pay all state and local realty transfer taxes or stamps.
Based on the terms of sale, it is the buyer's responsibility to verify
through each municipality and taxing authority what is outstanding and
owing. Further, bidders should review all other title issues with the
assistance of a lawyer before bidding. The USDA, Rural Development does
NOT guarantee or warranty the title. Rural Development will not give any
form of title opinion.

***Question*:** Can I see the property before bidding?

**Answer**: Each sale is independent with regards to arrangements for
inspection. In some instances, the sale will be held at the property,
and the property will be opened for a walk through when feasible. In
other instances, an Open House will be established and the sale itself
will be at a county courthouse. The Rural Development website will
provide you with this information for each property. In some cases, it
may not be possible to have an inspection. In those cases, the buyer
will be purchasing the property sight unseen. If a buyer is unable to
attend a scheduled Open House, Rural Development will not schedule
separate open houses for individuals. It is not required by law that the
property be made available for inspection. Rural Development, in an
attempt to encourage buyers to participate in the sales, has agreed to
make the property available for inspection when it is feasible based on
time constraints and other responsibilities. Access to the property is
at your own risk. Rural Development makes no representations or
warranties regarding the property.

***PAGE -2-***

***Question*:** The property I want to bid on is occupied, what do I do?

**Answer.** If the property purchased is occupied, it is the buyer's
sole responsibility and cost to remove the

former owner(s) from the property. The buyer is cautioned to seek his or
her own legal counsel in this process.

Rural Development does not participate or assist the buyer in this
endeavor. The buyer should take this into consideration when bidding. If
the property is occupied, an open house or interior inspection will not
be possible.

***Question*:** Do you guarantee or warranty the property?

**Answer:** No. There are no guarantees or warranties on the property.
The buyer purchases the property at his own risk. The property is sold
"as is" and under and subject to the order of sale.

***Question:*** The website says "opening bid"; what does that mean?

**Answer:** Rural Development will calculate an opening bid for each
property. This is the amount at which the bidding will start. The
property will not be sold for less than the opening bid.

***Question***: Can I bring in an inspector or appraiser?

**Answer**: You may bring along an inspector or appraiser at your own
cost to a scheduled open house. However, we do not make the property
available for independent inspections or appraisals, or for the turning
on of utilities either before or after the sale.

***Question*:** I am the high bidder; how long will it take for a final
settlement?

**Answer:** You will have thirty (30) days to send the Marshal's Office
the remainder of the sale price owed. Once the sale is completed and all
costs calculated, a Schedule of Distribution and Marshal Deed will be
prepared and sent to the United States Marshal for the Western District
of Pennsylvania for review and execution. The Marshals Deed is then
mailed to the successful bidder anywhere from 30 to 90 days of the date
of signature.

***Question*:** I was the high bidder; can I now take possession?

**Answer:** No. You do NOT own the property until you have the Marshals
Deed with your name. If you enter the property, you do so at your own
risk. Occasionally, an issue may arise that prevents a final sale. If
this occurs, we will return the funds you put down to secure your bid.
It is imperative that you do NOT do any work to the property. You will
NOT be reimbursed if you incur costs prior to final settlement.

**CLOSING COMMENTS:**

It is important to understand these sales are foreclosure sales. The
USDA, Rural Development does NOT own the property. Until the property is
conveyed by Marshal's Deed, title to the property remains with the
borrower. At the Marshal Sale, the Marshal is selling the property by
Court Order, "from the borrower" and "to the buyer" for the highest bid.
Sales may be delayed, stayed or set aside by the Court. There are
significant risks in purchasing these properties.

**FOR MORE INFORMATION**:

For more information regarding the foreclosure sales by USDA, Rural
Development, you may visit the website at:
[[www.resales.usda.gov.]{.underline}](http://www.resales.usda.gov./) The
website will provide you with a direct contact and telephone number at
Rural Development for each property.

**SAMPLE:**

**"NOTICE OF MARSHAL SALE" ANNOUNCED BY MARSHAL**

**NOTICE OF U.S. MARSHAL SALE OF REAL PROPERTY**

**Public notice is hereby given, that by virtue of an Order dated
\_\_\_\_\_\_\_\_\_\_ issued out of the United States District Court for
the Western District of Pennsylvania, in Civil Action
No.\_\_\_\_\_\_\_\_\_\_ on a judgment in the amount of
\$\_\_\_\_\_\_\_\_ plus interest from \_\_\_\_\_\_\_\_, rendered in said
Court, in favor of the United States of America and against
\_\_\_\_\_\_\_\_\_\_\_, the following described real estate, located at
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, Pennsylvania, shall
be offered for sale on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ at
\_\_\_\_\_\_\_\_\_\_\_\_\_ at the property address of:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, Pennsylvania, at public auction, to
the highest and best bidder by the U.S. Marshal for the Western District
of Pennsylvania:**

**ALL THAT CERTAIN BEING KNOWN AS: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
Pennsylvania \_\_\_\_\_\_\_\_\_\_\_ County Parcel Number
\_\_\_\_\_\_\_\_\_\_\_\_\_.**

**Terms of Sale: Ten percent (10%) of the highest sum bid must be
deposited by the highest bidder in cashier's check or certified check
with the Marshal upon the property being struck down to such bidder.
Upon failure to make such deposit, the bidder shall lose the benefit of
this bid and the property may be immediately put up again and sold
unless a deposit of the sum required be made by a second bidder willing
to take the property at the highest priced bid. The balance of the
purchase price shall be paid in cashier's check or certified check
within (30) thirty days after the date of the sale. Otherwise, the
Marshal may settle with a second bidder who has made the required
deposit at the Marshal's Sale and thereby registered his willingness to
take the property at the highest price bid, provided such second bidder
deposits the balance of the purchase price within (10) ten days after
notice from the Marshal of the first bidder's default. If no second bid
be registered, the property may be sold again at the risk of the
defaulting bidder, and in case of any deficiency in such resale, the
defaulting bidder shall make good the same to the person injured thereby
and the deposit shall be forfeited and distributed with the other funds
created by the sale.**

**The successful bidder takes the real estate subject to, and shall pay
all taxes, water rents, sewer charges, municipal claims, and other
charges and liens not divested by the sale and must also pay all state
and local realty transfer taxes or stamps, to the extent the funds
created by the sale is insufficient to pay such transfer taxes.**

**Distribution of Proceeds: A Schedule of Proposed Distribution of the
proceeds of sale will be filed with the Marshal within 10 days of
confirmation by Court Order of the sale. No Schedule of Distribution
will be filed if the property is sold to the Plaintiff for costs only.
The Marshal shall distribute the proceeds of sale in accordance with the
proposed Schedule of Distribution unless written exceptions are filed
with the Marshal not later than ten (10) days after filing the proposed
schedule.**

**For information concerning the amount that Plaintiff intends to bid or
for other information you may contact \_\_\_\_\_\_\_\_at
\_\_\_\_\_\_\_\_ or Plaintiff's counsel \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
at \_\_\_\_\_\_\_\_\_\_\_\_.**