The Secretary may pay a loan holder to avoid a foreclosure
To amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to take certain actions in the case of a default on a home loan guaranteed by the Secretary, and for other purposes, section 2, Sec. 2.
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The Secretary may pay a loan holder to avoid a foreclosure
The document says “can”Who acts: Secretary of Veterans AffairsHow: statuteSec. 2 in the PDF
What the document says
“The Secretary may, under terms and conditions determined by the Secretary-- ``(i) pay the holder of a loan guaranteed under this chapter an amount necessary to avoid the foreclosure of such loan;”
The inserted subparagraph lets the Secretary of Veterans Affairs pay the holder of a guaranteed loan the amount needed to avoid a foreclosure, on terms the Secretary sets. It replaces subparagraph (A) of section 3732(a)(2) of title 38, United States Code.
What the document actually says
“The Secretary may, under terms and conditions determined by the Secretary-- ``(i) pay the holder of a loan guaranteed under this chapter an amount necessary to avoid the foreclosure of such loan;”
That sentence, in plain words
The VA can pay the lender. It pays what it takes to stop the home from being taken.
What this is about
A lender can take back a home when payments stop. This lets the VA step in with money. The VA picks the terms.
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number against the Act itself before publishing. The paragraph underneath is our summary,
not the document's words. So is the plain English version, which is why it sits beside the
quotation rather than replacing it.
