---
kind: "section"
citation: "24 C.F.R. § 1005.759"
title: "24"
number: "1005.759"
heading: "Property on Trust Land—Tribal First Right of Refusal; foreclosure or assignment."
url: "https://uscodex.org/cfr/24/1005.759"
---

# §1005.759. Property on Trust Land—Tribal First Right of Refusal; foreclosure or assignment.

- (a) Tribal First Right of Refusal is written notice to the Tribe of the options to assume the [Section 184](/cfr/24/184.md) Guaranteed Loan or purchase the Note based on the current unpaid principal balance or appraised value for any property on Trust Land or other reasonable options as prescribed by [Section 184](/cfr/24/184.md) Program Guidance.
- (b) The Servicer shall provide Tribal First Right of Refusal no later than 14 days, or any extended timeframe prescribed by [Section 184](/cfr/24/184.md) Program Guidance, after the earlier of:
  - (1) Any lease provision addressing Tribal First Right of Refusal;
  - (2) 120 days after default, unless the Borrower is in active loss mitigation;
  - (3) Failure of loss mitigation after 180 days from default;
  - (4) The failure of loss mitigation after an extension of the loss mitigation period under [§ 1005.739(f)](/cfr/24/1005.739.md?p=f).
  - (5) The date the property was determined vacant or abandoned in accordance [§ 1005.737](/cfr/24/1005.737.md) or the earliest date the Servicer should have known the property was vacant or abandoned.
- (c) The Tribe shall have either the time frame provided in the lease or, if not defined in the lease, 60 days, or any extended timeframe prescribed by [Section 184](/cfr/24/184.md) Program Guidance, to accept or decline the offer of Tribal First Right of Refusal.
- (d) If the Tribe declines or does not respond to the Tribal First Right of Refusal within 60 days, or any extended timeframe prescribed by [Section 184](/cfr/24/184.md) Guidance, the Servicer must either complete First Legal Action or assignment to HUD, within the timeframes prescribed in §§ [1005.763](/cfr/24/1005.763.md) and [1005.765](/cfr/24/1005.765.md).
- (e) Any costs associated with failure to initiate Tribal First Right of Refusal may be deemed ineligible for claim payment.

## Notes

### Authority

Authority: 12 U.S.C. 1715z-13a; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).

### Source

Source: 89 FR 20056, Mar. 20, 2024; 89 FR 22084, Mar. 29, 2024, unless otherwise noted.