How do I reuse my VA loan benefit in full in the event of a default?

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Real Estate Agent with Semper Find My Home SA649708000
https://activerain.com/droplet/4ckf

The last several years have been difficult on all Americans economically, particularly veterans.  To have VA entitlement is to have is to have financial backing from the government, which pledges to repay that mortgage in the case of default.

Remember that getting released for liability from a VA loan or having a debt waived by the VA is not the same as paying off the loan.  In that case you'll have to pay back the government's loss.  Once that is done and only then will your benefits be restored.VA loan benefits using VA form 26-1880

As a veteran you are able to apply for a new home loan utilizing your VA benefits once that home has been sold and the loan paid in full.  There are no rules concerning the disposition of the first property once the loan has been paid in full.  Some veterans may go to obtain a new loan for a second home and will have no entitlement remaining on their Certificate Of Eligibility or COE, we talked about it here.  "Paid in full, no restoration" means the loan was paid off but the VA lacks information as to how the property was disposed.

Not to worry, if you're clients are faced with this simply have them update their Certificate Of Eligibility with the VA by filling out a VA form 26-1880.  This is a process only the veteran can apply for in order to keep the lending process moving forward, this may delay your Close Of Escrow, so keep that in mind.

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This Active Rain post is by Alex Popovic, for all your real estate needs please call 602-290-4266.

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Alex Popovic Real Estate Agent Phoenix, AZ (602) 290-4266

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Rainmaker
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ReadySetLoan Condo Approval Team
ReadySetLoan Condo Team LLC - South Windsor, CT
The FHA/VA Condo Project Approval Specialists

I really enjoy your articles.  Your posts are highly technical, very detailed and incredible relevant to Veteran borrowers.

Feb 23, 2014 09:59 PM #1
Rainer
91,207
Alex Popovic MRP
Semper Find My Home - Phoenix, AZ

Hey Eric,

Thanks for reading and I'm glad someone likes my blather about VA and the vets  

Feb 23, 2014 10:36 PM #2
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Rainer
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Alex Popovic MRP

Alex, Phoenix is huge can you help us find a place
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