8.06 FORECLOSURE BID AND LOAN TERMINATION (38 C.F.R. 36.4322) (02/01/18)

Owned by Kacey Olson
Nov 24, 2018
1 min read

© VA Servicers Handbook - M26-4

a. The servicer calculates the bid amount using the total eligible indebtedness (TEI). For more information on how TEI is calculated, refer to Chapter 14, Claims, of this handbook.
b. There are two bid types the servicer may determine:
1. Total debt. The VA net value is greater than, or equal to the reported TEI.
2. Net value. The VA net value is less than TEI.
c. If the net value of the home is $0.00, or less, the servicer should not bid more than the unguaranteed portion of the loan indebtedness at the foreclosure sale unless there are competitive bidders, and the servicer wants to acquire the property.