| |
|
|
|
|
| |
| Home >> VA Claims Resources >> VA Claims >> VA General Counsel Precedent Opinions |
VA General Counsel Precedent Opinions |
|
PREC 15-94 VA's Right to Subrogation on a Loan Guaranty Claim
|
PREC 15-94 VA's Right to Subrogation on a Loan Guaranty Claim Citation: Vet. Aff. Op. Gen Couns. Prec. 15-94, VAOPGCPREC 15-94, 1994 QUESTION PRESENTED: May the Secretary enforce a right to subrogation with respect to a guaranteed housing loan on which VA paid a claim if VA failed to provide the veteran with notice of a transferee's default?
HELD: Veterans who obtain a VA guaranteed loan have a constitutionally protected right to receive notice of a foreclosure proceeding that will affect their rights and liabilities. When a third party assumer defaults on the loan, VA must notify the original veteran obligor of the impending foreclosure, provided VA knows or can reasonably ascertain the veteran's address. If VA fails to provide the required notice, VA may not collect a debt from the veteran under subrogation, unless the private loan holder obtained a personal judgment against the veteran prior to VA paying the guaranty claim, or the holder provided the veteran with reasonably sufficient notice. The judgment may be subject to collateral attack in the VA appeals process if the court lacked jurisdiction to render that judgment. VA Form letter 26-251 is deemed to satisfy the notice requirement. |
|
|
|
|
|
|
|
|
|
|
|
