Information on GI Loan Default
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If you have a GI loan and are unable to pay for the home, can they hold money out of your social security?
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?
No, they cannot take your disability benefits from you. Only the US Government can if you owe child support, taxes, student loans etc. When your 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 U.S. Department of Veterans Affairs 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. The VA provides some information about the options to avoid a foreclosure.
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
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Struggling with debt?
Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q1 2024 was $17.69 trillion. Housing debt totaled $12.82 trillion and non-housing debt was $4.88 trillion.
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Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.
