Information on GI Loan Default - The Bills.com Blog

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Information on GI Loan Default

Question: If you have a GI loan and are unable to pay for the home and have to default on it can they hold money out of your social security disability check if the home doesn't sell for as much as the loan is?

Answer: No, they cannot take your disability benefits from you. Only the US Government can if you owe child support, taxes, student loans etc. Whenyour loan goes into default, your servicer/holder is responsible for contacting you, the mortgagor, to determine the reason for the default and attempt to make arrangements to cure the delinquency. If the problem cannot be resolved by the time you are three payments past due, the servicer/holder is required to notify VA that your loan is in default. After this notice is received, VA will attempt to contact you to discuss your current

situation and help you determine the best course of action.

If your property cannot be sold for an amount which is greater than or equal to what you owe on the loan, VA may pay a “compromise claim” for the difference in order to help you go through with the sale. You must contact VA to discuss the situation and get prior approval for a sale with a compromise claim payment. For more information on available cures to avoid a foreclosure,

please visit the Department of Veterans Affairs website . For more information on foreclosures, please visit the foreclosure information page on Bills.com.

I hope the information provided helps you Find. Learn. Save.

Best,
Bill
www.bills.com/blog

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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