Guidelines to consider for a Veteran customer that obtains a
divorce from his or her Veteran spouse with both parties jointly obligated to a
loan financed with the VHPB. and the Veteran whose VA Eligibility was used
retains the house.
A. Action to be
taken when the house is retained by the Veteran spouse whose VA Eligibility was
used for the loan.
B. Action to be
taken when the house is retained by the Veteran spouse whose VA Eligibility was
not used for the loan.
C. Action to
be taken when the house is retained by the Veteran spouse whose VA Eligibility
was used for the loan and the remaining spouse is released by the VA of
liability and choses to reapply with the VHPB for another loan. (also see VA
manual)
1. (A) (B) Applicant must submit a
copy of the Divorce Decree. The VHPB will proceed with the next step unless the
terms of the divorce render the VHPB unable to do so or make it unwise to
proceed.
2. (A) Applicant must
submit a copy of the Quit Claim Deed on the property currently secured by the
VHPB that shows the applicant has relinquished his/her right to the property.
3. (A) The Veteran homeowner whose
VA eligibility was used and who retains the house must contact the VA and
request that his/her spouse be released from liability by the VA.
4. (C) If the VA releases the Veteran loan
applicant from liability, the applicant may apply for a VHPB loan using his/her
VA eligibility.
5. (C)The Veteran
applicant's original VHPB debt must be used as a liability when evaluating the
loan request unless he/she applies for a release of liability from the VHPB and
the release is granted.
6. (A)
Before the VHPB will consider the release of the Veteran applicant from the
current VHPB loan, the Veteran homeowner who retains the property and whose
eligibility was used must submit credit and income data in a manner prescribed
by the VHPB and qualify for the existing loan on his/her own merits.
7. (A) If the veteran whose eligibility
was used and who retains the property cannot qualify for the
existing loan on his/her own merits, the veteran applicant whose eligibility
was not used may apply to the VHPB for the release of his/her
liability if the current homeowner has made at least twelve consecutive, timely
monthly payments.
Miss. Code Ann. §
35-7-7
