The Secretary receives a lien behind the first lien
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 3, Sec. 3.
Written by .
The Secretary receives a lien behind the first lien
The document says “means”Who acts: Secretary of Veterans AffairsHow: statuteSec. 3 in the PDF
What the document says
“receives a secured interest in the property that serves as collateral for the guaranteed loan, which is subordinate to the first lien guaranteed loan for such property.”
The other limb of the same transaction. The Secretary of Veterans Affairs takes a secured interest in the property, ranking behind the first lien held for the guaranteed loan.
What the document actually says
“receives a secured interest in the property that serves as collateral for the guaranteed loan, which is subordinate to the first lien guaranteed loan for such property.”
That sentence, in plain words
The VA gets a claim on the house. The first lender still comes first.
What this is about
If the house is sold, the first lender is paid first. The VA is paid after that.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The quotation is the document's own words, exactly as printed, and we check the page
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.
