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B-214837 1 (1984-10-11)

handle is hein.gao/gaobadlyo0001 and id is 1 raw text is: OECISION FILE: B-214837 THE COMPTROLLER GENERAL OP THE UNITED STATED WASHINOTON. .c .20548 DATE: October 11, 1984 MATTER OF: Foreclosure Sale DIGEST: The residence of a transferred employee of the Veterans Administration was sold in a foreclosure sale pursuant to court order. The employee may not be reimbursed under 5 U.S.C. S 5724a(a)(4) for costs assessed by the court in connection with the foreclosure sale since the Federal Travel Regulations specifically preclude reimbursement for costs of litigation. Costs deducted from the proceeds of the sale to winterize and secure the premises may not be reimbursed in view of the regulatory prohibition against reimbursement for operating and maintenance expenses. The question in this case is whether the expenses disbursed by the referee out of the proceeds of the foreclosure sale of a transferred employee's residence may be reimbursed as residence sale expenses under 5 U.S.C. S 5724a(a)(4). Although the unusual nature of the foreclosure sale does not preclude reimbursement of associated residence sale expenses, the Federal Travel Regulations prohibit reimbursement of maintenance costs and costs of litigation. Since expenses disbursed by the referee were for maintenance of the property or for litigation costs associated with the judicial process of foreclosure, they may not be reimbursed.1/ The Veterans Administration transferred the employee in this case from Albany, New York, to Alex- andria, Louisiana, on February 9, 1981. Under reg- ulations then in effect, the Veterans Administration extended the period for completing residence sale and purchase transactions to February 10, 1984. The em- ployee's New York residence was ultimately sold at a foreclosure sale in March 1983 as the result of a ,Judg- ment of Foreclosure entered in December 1982. The employee claims reimbursement for the following amounts disbursed by the referee out of the proceeds of the foreclosure sale: 1/ The Director, Office of Budget and Finance, (Controller), Veterans Administration, submitted this request for an advance decision.

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