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SNAP CERTIFICATION MANUAL – SECTION 4000 4B4500 Inaccessible Resources 27B4570 Installment Contracts as Inaccessible Resources

3. The owner of the business has agreed not to sell the property until the note is paid. (This insures that the creditor’s collateral interest is protected.) This exclusion will not apply if the property owner could sell the mortgaged property and use the proceeds to pay off the loan. It applies only when the household is prohibited by the agreement from selling the mortgaged property.

4570 Installment Contracts as Inaccessible Resources SNAP Manual 10/01/87 Installment contracts are agreements under which an individual receives a monthly payment on property which has been sold. See SNAP 5710 for instructions on determining the amount of income received under an installment contract, which is to be counted as income in the SNAP budgeting process. When installment contracts are not producing any income because the purchaser is defaulting on the payments, the contract is considered an inaccessible resource. This is true until the property legally reverts back to the seller.

4580 Resources Unlikely to Produce Significant Return SNAP Manual 07/01/01 A resource is considered inaccessible if, as a practical matter, the household is unable to sell the resource for any significant return. A significant return is any return estimated to be more than $1,500 after estimated costs of sale or disposition and taking into account the ownership interest of the household. EXAMPLE: A household member owns a lot jointly with three siblings who are not household members. The lot is valued at $4,000. Costs of selling the lot are estimated at$500. $4,000 - $500 = $3,500 / 4 = $875. $875 is less than $1,501. This policy does not apply to stocks or bonds or to other negotiable financial instruments. It does apply to vehicles. See SNAP 4860. Verification of the value of a resource to be excluded will be required only if the information provided by the household is questionable.