The bill would create a Department of Veterans Affairs Partial Claim Program for VA-guaranteed home loans that are in default or at risk of default. The VA could pay a portion of the debt to the loan holder to help prevent or resolve default. The borrower would agree to repay that amount without interest when the loan matures. The partial claim would generally be capped at 25% of the unpaid principal balance, with higher limits in certain cases. The bill would also require the VA to set a sequence of options loan holders must offer to help veterans avoid foreclosure, and it would allow penalties for loan holders that knowingly make materially false statements. The bill was introduced in the Senate and referred to the Committee on Veterans’ Affairs.
If you have a VA-guaranteed home loan in default or at risk of default, the VA could choose to use a partial claim to help address it. The program would be at the VA’s discretion, and the bill does not guarantee that a borrower will receive one. The VA would strongly encourage loan holders to pause foreclosures until the program is fully operational, but this is not a required pause.
Borrowers could not be charged expenses related to a partial claim. They would agree to repay the amount covered by the claim without interest when the loan matures. No publicly available information on other program costs.
No publicly available information.
No publicly available information.