> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Delinquent Federal Debt Documentation

> Provide documentation of any delinquent federal debt to determine loan eligibility and required resolutions.

## What this task is

This task collects **documentation related to any delinquent federal debt** disclosed or identified in the borrower’s profile.
“Federal debt” may include, for example:

* **Federal student loans**,
* **Tax debts** owed to the IRS, or
* Other obligations owed directly to the **U.S. federal government**.

The focus is on understanding the **nature, amount, status, and resolution plan** for the delinquent debt.

## When this task is required

This task is required when:

* The loan file indicates the borrower is **presently delinquent on federal debt**, whether through:
  * Application disclosures,
  * Credit report findings, or
  * Additional documentation supplied during underwriting.

In these cases, most mortgage programs require a deeper review to determine if the borrower is **eligible** and under what conditions.

## Why this task is required

Delinquent federal debt can be a **significant barrier** to mortgage eligibility:

* Certain loan types and programs **prohibit lending** to borrowers with unresolved federal delinquencies.
* Others may require **payment plans, rehabilitation, or payoff** before a new mortgage can close.

Collecting detailed documentation allows the underwriter to:

* Confirm the **type and amount** of the debt.
* Assess whether the borrower is on an **acceptable repayment plan** or has **resolved the delinquency**.
* Apply specific **agency or investor rules** about federal debt eligibility.

Without this information, the lender may be unable to confirm that the borrower **meets minimum eligibility standards**, potentially halting the loan.

## Documents needed to resolve this task

To satisfy this task, provide:

* **Official documentation** from the relevant federal agency or servicer, such as:
  * Statements or notices showing the **outstanding balance**, **status**, and **type of federal debt**.
  * **Payment plans or rehabilitation agreements**, including terms and required payments.
  * Any **letters indicating the debt has been resolved, paid in full, or brought current**.
* If applicable, **proof of recent payments** consistent with an approved plan (for example, bank statements or payment confirmations).

These documents allow the underwriter to determine whether the borrower is **eligible** under current rules and what, if any, **additional conditions** are needed before closing.