Claim Under Loan Guarantee Form

The VA Home Loan Guarantee Program has helped many eligible veterans obtain their dream of home ownership. By offering no down payment options and making it easier to qualify for a loan, more veterans are able to purchase a home without waiting. In most cases these veterans go on to make their payments on time and have no problems with their mortgage payments. However, in some cases the VA approved lenders that finance the loans are forced to foreclose on the VA guarantee as a result of the veteran defaulting on their loan. In these cases there is a specific form that the lender needs to fill out and submit to the VA before they can get the guaranteed portion of the loan paid. The Claim Under Loan Guarantee Form is required for the lender to recapture the portion of the loan that was covered by the VA Home Loan Guarantee. This form requests information such as:

The name and address of the lender who is making the claim to the VA for the guaranteed portion of the mortgage loan.
The names, address, and social security numbers of the veteran and any co-borrower that originally obtained the loan with the VA guarantee on it.
The names, address, and social security numbers of the last people to hold the title to the property in their name. This is in the case that the veteran who originated the loan allowed their guaranteed loan to be assumed by a new owner of the house in which case the title would now be in their name and not the veteran’s name.
The original VA loan number and the loan number of the present owner in the case that the mortgage has been assumed.
The date the loan was terminated, the sale date of the home, and the date the home’s title was voluntary conveyed and the deed was recorded.
The amount of each payment made, the total number of payments that were made on the loan, how much of this amount was applied to the interest on the loan, and how much of this amount was applied to the principal of the loan.
Any additional payments or pre-payments made on the principal amount of the loan.
The original amount of the mortgage loan.
The original amount of the mortgage loan that the VA guaranteed.
The date that the owner first defaulted on the mortgage loan.
The loan account status including what the balance was on the principal of the loan the last time the owner made a mortgage payment, and any advances made by the mortgage company to the borrower.
The liquidation expenses incurred by the mortgage company as a result of the foreclosure.
Any credits to the borrower including insurance refunds and escrow account balances.
The total amount the borrower is claiming from the VA guarantee.
The proceeds of the sale liquidation of the property which must include the date, amount of sale, and purpose.
The signature of a mortgage company official who is authorized to process VA Loan Guarantee claims paperwork.

All of this information is necessary in order for a mortgage company to claim their VA loan guarantee in the cases when veterans default on their loans. If you are a veteran in the position of mortgage payment problems please contact the VA and your mortgage company before you just allow your home to be foreclosed upon. Most mortgage companies have repayment plans that could help you retain your home when you are unexpectedly unable to make a mortgage payment. For more information on VA Home Loan Guarantee claims go to http://www.vba.va.gov/pusbs/forms/26-1874.PDF