8.01 FORECLOSURE (38 C.F.R. 36.4322) (02/01/18)

© VA Servicers Handbook - M26-4

a. Servicers are delegated the authority to complete all termination actions on a VA-guaranteed loan. When a delinquency cannot be resolved, and the loan has been deemed insoluble, or the property has been abandoned, the servicer should proceed with foreclosure action. VA encourages servicers to continue loss mitigation efforts even after foreclosure proceedings have commenced. At any time prior to the liquidation sale, servicers must accept funds to cure a delinquency unless the servicer obtained prior written approval from VA, or if reinstatement of the loan would adversely affect the dignity of the lien, or is otherwise precluded by state law as (38 C.F.R. 36.4309 (h)).