A borrower who defaults on a partial claim is liable for the loss
What the document says“a borrower who defaults on a partial claim shall be liable to the Secretary for any loss suffered by the Secretary with respect to such default, and such loss may be recovered in the same manner as any other debt due the United States. The Secretary shall not restore housing loan entitlement under section 3702(b) of this title until such loss is repaid in full.”
The new subparagraph (A) of section 3737(e)(1) of title 38 replaces the earlier wording. A further subparagraph lets the Secretary charge administrative costs, fees and interest in a manner similar to section 5315 of that title.
What the document actually says“a borrower who defaults on a partial claim shall be liable to the Secretary for any loss suffered by the Secretary with respect to such default, and such loss may be recovered in the same manner as any other debt due the United States. The Secretary shall not restore housing loan entitlement under section 3702(b) of this title until such loss is repaid in full.”
A borrower who does not pay back a partial claim owes the loss to the government. It is collected like any other debt owed.
Home loan help from the government comes with an amount a veteran may use. It is not given back until the loss is paid in full.
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